Section 320 of the Bharatiya Nyaya Sanhita (BNS), 2023
Section 320 of the Bharatiya Nyaya Sanhita, 2023 (BNS), under Chapter XVII โ Offences Against Property:
๐ท๏ธ Section 320 โ Dishonest or Fraudulent Removal or Concealment of Property to Prevent Distribution Among Creditors
๐ Offence Definition
A person commits an offence under this section if they:
Dishonestly or fraudulently:
Remove, conceal, or deliver property to another person,
Transfer or cause to be transferred property to another person,
Without adequate consideration,
Intending to prevent, or knowing it to be likely that such action will prevent, the distribution of that property according to law among their creditors or the creditors of any other person.
โ๏ธ Punishment
Imprisonment: Not less than 6 months, which may extend up to 2 years,
Fine, or
Both.
๐งญ Key Legal Elements
Dishonesty or Fraudulence: The act must be committed with dishonest or fraudulent intent.
Property Involved: The property must be movable and owned by the person committing the act.
Adequate Consideration: The transfer or concealment must be without adequate consideration, meaning no fair value was exchanged.
Intent or Knowledge: The person must intend to prevent, or know it is likely that their action will prevent, the lawful distribution of the property among creditors.
๐ Context and Comparison
Consolidation: Section 320 consolidates and modernizes provisions related to fraudulent removal or concealment of property from the Indian Penal Code (IPC), particularly Sections 421โ424.
Enhanced Punishment: Introduces a mandatory minimum sentence of 6 months, reflecting the seriousness of the offence.
Scope: Applies to individuals who, in anticipation of insolvency or to defraud creditors, remove or conceal property to prevent its lawful distribution.
๐งพ Practical Example
Scenario: Rajesh, facing significant debts, transfers his valuable car to his brother without any payment, intending to prevent creditors from seizing it. This action falls under Section 320, as it involves the dishonest transfer of property to prevent lawful distribution among creditors.
๐ Summary Table
| Element | Details |
|---|---|
| Offence | Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors |
| Punishment | Imprisonment: 6 months to 2 years; Fine; or Both |
| Mental State | Dishonest or fraudulent intent |
| Property Type | Movable property |
| Consideration | Without adequate consideration |
| Intent or Knowledge | To prevent lawful distribution among creditors |
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