What is Section 422 IPC? Dishonestly preventing debt being available for creditors
Published on: Lawiz Team
Learn about Section 422 IPC: Dishonestly preventing debt being available for creditors
Official Legal Text
Whoever dishonestly or fraudulently prevents any debt or demand due to himself or to any other person from being made available according to law for payment of his debts or the debts of such 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.
What This IPC Section Means – Explained in Simple Words
Section 422 punishes anyone who dishonestly or fraudulently prevents a debt from being available to the creditors.
Purpose
To protect creditors from being cheated by debtors who hide, divert, or deny their debts.
Bailable or Not Bailable & Punishment
Bailable: Bailable, Punishment: Imprisonment up to 2 years, or fine, or both.
Key Elements
1. The accused must prevent a debt from being available. 2. The prevention must be dishonest or fraudulent. 3. It must affect the creditor's right to recover the debt.
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, before being declared bankrupt, removes their assets to another country to avoid paying creditors, it is an offence under Section 422.
Legal Defenses
If the accused can prove that the debt was genuinely settled or that they had no intention to cheat creditors, they may be acquitted.
Related Sections
Related to Section 421 (Concealment of property to cheat creditors) and Section 424 (Fraudulent removal of property).
Important Note
This section applies only when the intent is to defraud creditors.
FAQs
What does Section 422 IPC define?
Dishonestly or fraudulently preventing debt being available for creditors.
How is 'Dishonestly or fraudulently preventing debt being available for creditors' interpreted in law?
It is interpreted based on the Indian Penal Code and relevant case law.
Where is Section 422 IPC applicable?
Its application depends on the legal context and the nature of the offence involved.
Can you give a practical example for Section 422?
Examples include real-life cases involving dishonestly or fraudulently preventing debt being available for creditors.
Is Section 422 used along with other IPC sections?
Yes, it is often cited alongside related criminal provisions.
How do courts interpret Section 422 IPC?
Courts interpret it using past judgments and statutory interpretations.
Why is Section 422 significant?
It holds importance in the framework of criminal law.