1) In theft, the object of the offence is to take property from another person’s possession. In Criminal misappropriation, the offender is already in possession of the property and there is no invasion of another’s possession and his possession is not punishable either because he has lawfully obtained as the property often comes innocently into his possession or because he has found it or is a joint owner of it or has acquired it under some mistaken notion.
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2) The property in respect of which the offence is committed must be movable in theft. But, the property in respect of which the offence is committed must be movable in criminal misappropriation and such as cheques and other negotiable instruments may be misappropriated whereas they are out of consideration under theft.
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3) In theft, dishonest intention precedes the act of taking whereas, in criminal misappropriation, dishonest intention develops subsequently or from the knowledge of some new fact, with which the party was not previously acquainted, the retaining becomes wrongful and fraudulent.
4) In theft, moving of property itself is an offence, but, in criminal misappropriation the moving of property may be perfectly lawful; it is the subsequent intention to dishonestly misappropriate or convert it to his own use that is an offence.
5) The moving of property takes place without the consent of the owner. But in Criminal Misappropriation, the possession may even be with the consent of the owner, e.g., he may be a joint owner.
6) The punishment for theft is three years or fine or both, but the punishment for criminal misappropriation is two years and/ or fine.