In Brief
The appellants imported machines that were seized by Customs authorities pending payment of customs duty. While adjudication was pending, custody of the machines was given to the appellants, who then allegedly sold them. The appellants faced prosecution for criminal breach of trust under IPC Section 409/34. The Supreme Court allowed the appeal and quashed the proceedings, holding that breach of trust requires entrustment of property, but here the appellants remained the owners—the Customs authority's only claim was for duty payment. Additionally, as the Customs settlement had been completed with all dues quantified and ordered to be adjusted from amounts in deposit, no live cause of action remained to proceed with criminal proceedings.
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