Indian Penal Code, 1860
Section 381
repealedTheft by clerk or servant of property in possession of master
Whoever, being a clerk or servant, or being employed in the capacity of a clerk or servant, commits theft in respect of any property in the possession of his master or employer, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Why this exists
This section addresses theft by someone in a position of trust, such as an employee handling their employer's property. Because employers must rely on staff having access to money, goods, or records, a betrayal of that trust through theft is treated more seriously than an ordinary theft by a stranger. The heavier punishment reflects the breach of trust involved. A similarly structured offence for theft by an employee continues under the Bharatiya Nyaya Sanhita, 2023, which replaced the Indian Penal Code in 2024.