Question:

Principle: One who dishonestly misappropriates or converts to his own use or sells any movable property belonging to another, is guilty of the offence of misappropriation.
Facts: 'A' takes property belonging to 'Z' out of 'Z's' possession, in good faith, believing when he takes it, that the property belongs to him self. Subsequently, 'A', on discovering his mistake, without disclosing the actual facts, dishonestly sells the property to a stranger.

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Good faith belief is a valid defence against misappropriation when there is no intention to commit the offence.
Updated On: Aug 18, 2025
  • 'A' may be guilty of theft but not misappropriation.
  • 'A' is guilty of an offence of misappropriation.
  • 'A' is not guilty because when he took the property, he believed in good faith that it belonged to him.
  • 'A' is not guilty as the property can be recovered from the stranger.
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The Correct Option is C

Solution and Explanation

The principle explains that misappropriation occurs when someone dishonestly takes property belonging to another and converts it for their own use. However, in this case, 'A' took the property in good faith, believing it belonged to him. Since 'A' had no intention of dishonestly converting the property, he is not guilty of misappropriation. The key here is that 'A' acted in good faith and without the intention to commit a dishonest act.


Option (A) 'A' may be guilty of theft but not misappropriation: This is incorrect because 'A' did not steal the property; he mistakenly took it in good faith.

Option (B) 'A' is guilty of an offence of misappropriation: This is incorrect because 'A' did not have the intent to misappropriate.

Option (D) 'A' is not guilty as the property can be recovered from the stranger: This is irrelevant as the issue is whether 'A' had the intent to misappropriate, not the recovery of the property.
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