BNS Section 321 – Dishonestly or fraudulently preventing debt being available for creditors
The Indian Penal Code (IPC) Section – 422
Bharatiya Nyaya Sanhita (BNS) Section 321: Dishonestly or Fraudulently Preventing Debt from Being Available for Creditors
This section deals with the dishonest or fraudulent act of preventing a debt or demand from being used to pay 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 prevents a debt or demand (money owed to them or someone else) from being made available.
- The debt or demand is meant to be used to pay their own creditors or the creditors of another person.
Examples of the Offence
- Example 1:
- A owes money to his creditors but hides a payment he is supposed to receive from a debtor. A is guilty under this section.
- Example 2:
- A fraudulently cancels a debt owed to him to avoid using it to pay his creditors. A is guilty under this section.
What is the Punishment?
The punishment for this offence is:
- Jail term of up 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 prevent the debt from being used to pay creditors.
- Debt or Demand:
- The money owed (debt) or claim (demand) must be legally due to the person or someone else.
- Preventing Payment:
- The act must aim to stop the debt or demand from being used to pay creditors.
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 321 makes it a crime to dishonestly or fraudulently prevent a debt or demand from being used to pay creditors. The punishment includes up to 2 years in jail, a fine, or both. The law ensures that creditors’ rights are protected and dishonest actions are punished.
