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 may extend to two years, or with fine, or with both.
IPC Section 421: Simplified Explanation
IPC Section 421 deals with the offence of dishonestly or fraudulently removing or concealing property to prevent its distribution among creditors. This section applies when an individual, knowing they owe money to creditors, deliberately hides or moves their property to avoid paying their debts. The intention behind such actions is to cheat the creditors by preventing them from obtaining their rightful share of the debtor’s assets.
Is IPC Section 421 bailable?
IPC Section 421 is bailable. Given the nature of the crime, which involves financial deception rather than physical harm, it allows for the possibility of bail under judicial discretion.
IPC Section 421 Punishment
The punishment under IPC Section 421 involves imprisonment of either description for a term extending to two years, with a fine, or with both. This penalty reflects the seriousness of undermining creditors’ rights through deceitful practices.
Example of IPC Section 421
A real-life example of IPC Section 421 involved a businessman who, facing bankruptcy, transferred ownership of his valuable assets to a relative without any legitimate business reason. This transfer was done secretly to prevent the assets from being seized and distributed among his creditors. When the creditors initiated legal proceedings to recover their dues, they discovered the fraudulent transfer. The businessman was arrested and charged under IPC Section 421 for dishonestly removing property to avoid distribution among creditors. In court, he was found guilty, sentenced to one year in prison, and fined, emphasizing the legal consequences of such actions designed to cheat creditors and evade financial responsibilities.
