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X finds a Government promissory note bearing a blank endorsement and knows it belongs to C. X pledges…

Explanation 1 to section 314 treats temporary dishonest misappropriation as misappropriation. Its illustration applies the rule to a found Government promissory note pledged…

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X finds a Government promissory note bearing a blank endorsement and knows it belongs to C. X pledges it to a banker to secure a personal loan, intending to return it to C within a week. Under the Bharatiya Nyaya Sanhita, 2023, what offence does this use of the note establish on the stated facts?

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Answer and explanation

Correct answer D

Explanation 1 to section 314 treats temporary dishonest misappropriation as misappropriation. Its illustration applies the rule to a found Government promissory note pledged for a loan despite an intention to return it.

Option feedback

Option A

Intending to restore the note does not excuse temporary dishonest conversion.

Option B

The note was found, and the facts establish no entrustment.

Option C

The facts do not specify deception and consequent inducement as required for cheating.

Option D

X dishonestly converts the note to personal use by pledging it, even though X intends to restore it.

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