Whoever, at any sale of property held by the lawful authority of a public servant, as such, purchases or bids for any property on account of any person, whether himself or any other, whom he knows to be under a legal incapacity to purchase that property at that sale, or bids for such property not intending to perform the obligations under which he lays himself by such bidding, shall be punished with imprisonment of either description for a term which may extend to one month, or with fine which may extend to two hundred rupees, or with both.
Simplified Explanation
Section 220 addresses the illegal purchase or bidding for property at a sale conducted under the lawful authority of a public servant. It penalizes individuals who engage in such activities knowing that they, or another person, are legally prohibited from purchasing the property.
Key Elements of Section 220
1. Illegal Purchase or Bidding
- The section criminalizes the act of purchasing or bidding for property at a sale conducted by a public servant under their lawful authority when the individual knows that:
- They or someone else is legally incapable of purchasing the property.
- The bidding is done with no intention to honor the obligations created by the bid, indicating a fraudulent or non-serious intent.
2. Legal Incapacity
- The “legal incapacity” refers to situations where the law prohibits a person from purchasing the property, such as cases where:
- The individual is barred from engaging in such transactions due to legal reasons (e.g., they may be a public servant prohibited from engaging in certain financial transactions or they may be subject to restrictions in the specific sale).
- Another person on whose behalf the bid or purchase is made is legally prohibited from engaging in the transaction.
3. Not Honoring Bidding Obligations
- The section also targets cases where individuals bid on property without any intention of actually fulfilling the contractual obligations that arise from the bid, which is typically considered a fraudulent act to disrupt the legal sale process.
Punishment for the Offense
- Imprisonment: The individual may face imprisonment of either description for a term which may extend to one month.
- Fine: The individual may also be liable to a fine which may extend to two hundred rupees.
- Combination of Both: The punishment may involve both imprisonment and fine.
Purpose and Significance of Section 220
1. Preventing Fraud in Public Sales
- This section ensures that individuals who are legally prohibited from purchasing property at a public sale do not attempt to circumvent the law by purchasing property through other means, such as bidding on behalf of someone else.
2. Safeguarding Public Sale Integrity
- The law protects the integrity of public sales, ensuring that those who participate in these sales are doing so with the intent to honor the terms and obligations of the sale, preventing fraudulent or manipulative actions.
3. Deterrent to Non-Compliant Bidding
- It acts as a deterrent to those who may attempt to place bids without the intention of fulfilling the conditions attached to the sale, ensuring that only serious buyers are allowed to participate in public sales conducted by public servants.
Illustrative Scenario
- Scenario 1: A public servant conducts a public auction of confiscated property. Person A, who is legally barred from purchasing such property due to an existing conflict of interest, bids on the property, either for themselves or for someone else who is also barred from buying. This action is in violation of the law, and Person A would be guilty under Section 220.
- Scenario 2: Person B bids on a piece of property at a government auction but has no intention of honoring the bid or fulfilling the contractual obligations if they win the auction. This bid is done only to disrupt or manipulate the auction. Person B would be punished under Section 220 for engaging in such fraudulent bidding.
Conclusion
Section 220 of the Bharatiya Nyaya Sanhita, 2023 aims to prevent illegal purchases and fraudulent bids in sales of property conducted by public servants under their lawful authority. It criminalizes the act of bidding or purchasing property when the individual knows they are legally prohibited from doing so or when they do so without the intention to fulfill the legal obligations of the transaction. This section ensures the legitimacy and fairness of public sales and discourages fraudulent actions that could undermine the integrity of such proceedings.
