Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors
Full Text
Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfers or causes to be transferred to any person, without adequate consideration, any property, intending thereby to prevent, or knowing it to be likely that he will thereby prevent, the distribution of that property according to law among his creditors or the creditors of any other person, shall be punished with imprisonment of either description for a term which shall not be less than six months but which may extend to two years, or with fine, or with both.
Plain English Summary
Punishes the dishonest or fraudulent removal, concealment, or transfer of property without adequate consideration to prevent its distribution among creditors, prescribing a minimum six-month sentence.
Key Legal Elements
- Dishonest or fraudulent removal, concealment, delivery, or transfer of property
- Transfer or disposal must be done without adequate consideration
- Intent or knowledge to prevent the distribution of the property according to law
- Distribution prevention is targeted at the creditors of the offender or the creditors of any other person
- Establishes a mandatory minimum sentence of six months imprisonment
Punishment
Imprisonment not less than 6 months and up to 2 years, or fine, or both
Practical Note
CRITICAL COMPARISON: This section corresponds to Section 421 of the IPC. While the maximum punishment remains 2 years or fine, BNS Section 320 introduces a strict mandatory minimum punishment of six months imprisonment, representing a major policy shift to protect creditor rights and prevent fraudulent insolvency transfers.
हिंदी पाठ
जो कोई अपने लेनदारों या किसी अन्य व्यक्ति के लेनदारों के बीच विधि के अनुसार उस संपत्ति के वितरण को तद्वारा रोकने के आशय से, या यह जानते हुए कि तद्वारा वह संभाव्यतः उसे रोक देगा, किसी संपत्ति को बेईमानी से या कपटपूर्वक हटाएगा, छिपाएगा या किसी व्यक्ति को परिदत्त करेगा, अथवा बिना पर्याप्त प्रतिफल के किसी व्यक्ति को हस्तांतरित करेगा या हस्तांतरित करवाएगा, वह दोनों में से किसी भांति के कारावास से, जिसकी अवधि छह मास से कम की नहीं होगी किन्तु जो दो वर्ष तक की हो सकेगी, या जुर्माने से, या दोनों से, दंडित किया जाएगा।