A, Z’s agent in Kolkata, is entrusted with ₹1 lakh to invest according to Z’s directions under their…

Section 316(1), illustration (c), expressly treats the agent's dishonest diversion of entrusted investment funds as "Criminal breach of trust.". Entrustment and dishonest misuse contrary to the contract are established, so "Criminal misappropriation in a case where no entrustment existed." and "Only a civil breach, because an agent can never commit an offence involving entrusted funds." fail, and later dishonest diversion does not by itself establish deception when the money was originally remitted, so "Cheating through deception inducing the original remittance, which must be presumed merely from the later diversion." fails.