Bharatiya Nyaya Sanhita: Section 320 – Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors

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.

Simplified Explanation

Section 320 of the Bharatiya Nyaya Sanhita, 2023 (BNS 2023) deals with the dishonest or fraudulent removal or concealment of property to prevent its distribution among creditors.

Key Elements of Section 320:

1. Dishonest or Fraudulent Removal, Concealment, or Transfer (Subsection 1):
   • This section applies when a person dishonestly or fraudulently:
     • Removes, conceals, delivers, or transfers property to another person.
     • The transfer is made without adequate consideration (i.e., without proper value in exchange).
     • The intention behind these actions is to prevent, or the person knows it is likely to prevent, the distribution of the property according to law among the person’s creditors or the creditors of any other person.
2. Punishment (Subsection 2):
   • If convicted under this section, the offender can be punished with:
     • Imprisonment (either description) for a term of at least six months but which may extend to two years, or
     • Fine, or both imprisonment and fine.

Summary of Section 320:

• This offense is committed when someone fraudulently or dishonestly removes or hides property to prevent creditors from getting their legal share.
• The punishment for this offense includes imprisonment for up to two years, a fine, or both, depending on the case.