What is Section 421 IPC? Dishonest removal or concealment of property to prevent distribution among creditors
Published on: Lawiz Team
Learn about Section 421 IPC: Dishonest removal or concealment of property to prevent distribution among creditors
Official Legal Text
Whoever dishonestly or fraudulently removes, conceals or delivers to any person any property, intending thereby to prevent the distribution of that property according to law among his creditors, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.
What This IPC Section Means – Explained in Simple Words
Section 421 punishes anyone who dishonestly or fraudulently removes, conceals, or transfers property to prevent it from being distributed among creditors.
Purpose
To ensure that debtors do not cheat their creditors by hiding or transferring assets.
Bailable or Not Bailable & Punishment
Bailable: Bailable, Punishment: Imprisonment up to 2 years, or fine, or both.
Key Elements
1. The property must belong to a debtor. 2. It must be removed, concealed, or transferred. 3. The intent must be to prevent distribution among creditors.
Punishment Details
Imprisonment of either description for a term which may extend to two years, or a fine, or both.
Illustrative Example
If a person, knowing they are unable to repay their debts, transfers their house to a relative to avoid payment, they are punishable under Section 421.
Legal Defenses
If the accused can prove that the transfer was genuine and not intended to cheat creditors, they may be acquitted.
Related Sections
Related to Section 422 (Preventing debt being available for creditors) and Section 424 (Fraudulent concealment of property).
Important Note
This section applies only when the debtor has the intention to cheat creditors.
FAQs
What does Section 421 IPC define?
Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors.
How is 'Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors' interpreted in law?
It is interpreted based on the Indian Penal Code and relevant case law.
Where is Section 421 IPC applicable?
Its application depends on the legal context and the nature of the offence involved.
Can you give a practical example for Section 421?
Examples include real-life cases involving dishonest or fraudulent removal or concealment of property to prevent distribution among creditors.
Is Section 421 used along with other IPC sections?
Yes, it is often cited alongside related criminal provisions.
How do courts interpret Section 421 IPC?
Courts interpret it using past judgments and statutory interpretations.
Why is Section 421 significant?
It holds importance in the framework of criminal law.