BNS Section 320 – Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors
The Indian Penal Code (IPC) Section – 421
Bharatiya Nyaya Sanhita (BNS) Section 320: Dishonest or Fraudulent Removal or Concealment of Property to Prevent Distribution Among Creditors
This section deals with the dishonest or fraudulent act of hiding, transferring, or removing property to avoid its distribution among creditors. Below is a simple explanation of the law in easy-to-understand language:
What is the Offence?
The offence occurs when a person:
- Dishonestly or fraudulently:
- Removes, hides, or transfers property to someone else.
- Does so without receiving proper payment or value in return.
- Intends to prevent or knows that their actions will likely prevent:
- The lawful distribution of the property among their creditors or someone else’s creditors.
Examples of the Offence
- Example 1:
- A, who owes money to several creditors, secretly transfers his property to a friend for free to avoid paying his debts. A is guilty under this section.
- Example 2:
- A hides his valuable assets to prevent creditors from claiming them during bankruptcy proceedings. A is guilty under this section.
What is the Punishment?
The punishment for this offence is:
- Jail term of not less than 6 months but which may extend to 2 years, or
- Fine, or
- Both.
Other Important Details
| Aspect | Details |
|---|---|
| Cognizable or Non-cognizable | Non-cognizable – Police cannot arrest without a warrant. |
| Bailable or Non-bailable | Bailable – The accused can seek bail. |
| Court for Trial | Any Magistrate – The case can be tried in a Magistrate’s court. |
Key Points to Understand
- Dishonest or Fraudulent Intent:
- The person must act dishonestly or fraudulently to avoid paying creditors.
- Property Removal or Concealment:
- The property is hidden, transferred, or given away without proper payment.
- Preventing Distribution:
- The act must aim to prevent creditors from legally claiming the property.
Why is this Law Important?
This law is important because:
- It protects the rights of creditors to recover their dues.
- It prevents dishonest individuals from avoiding their financial responsibilities.
- It ensures fairness in financial and legal proceedings.
Summary
The Bharatiya Nyaya Sanhita (BNS) Section 320 makes it a crime to dishonestly or fraudulently hide, transfer, or remove property to avoid its distribution among creditors. The punishment includes a jail term of 6 months to 2 years, a fine, or both. The law ensures that creditors’ rights are protected and dishonest actions are punished.
