What is Section 423 IPC? Dishonest execution of deed of transfer containing false consideration
Published on: Lawiz Team
Learn about Section 423 IPC: Dishonest execution of deed of transfer containing false consideration
Official Legal Text
Whoever dishonestly or fraudulently executes or signs any deed of transfer of any property, or any interest therein, containing a false statement of consideration, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
What This IPC Section Means – Explained in Simple Words
Section 423 punishes anyone who dishonestly or fraudulently executes a deed of transfer that contains a false statement of the value of consideration.
Purpose
To prevent individuals from creating false property transfer deeds to cheat others.
Bailable or Not Bailable & Punishment
Bailable: Bailable, Punishment: Imprisonment up to 2 years, or fine, or both.
Key Elements
1. The deed of transfer must be created. 2. The statement of consideration must be false. 3. The false statement must be made dishonestly or fraudulently.
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 sells a property claiming it is worth ₹10 lakh while its actual value is ₹5 lakh to cheat the buyer, it is an offence under Section 423.
Legal Defenses
If the accused can prove that the valuation was made in good faith without any intention to deceive, they may be acquitted.
Related Sections
Related to Section 424 (Fraudulent concealment of property) and Section 420 (Cheating and dishonestly inducing delivery of property).
FAQs
What does Section 423 IPC define?
Dishonest or fraudulent execution of deed of transfer containing false statement of consideration.
How is 'Dishonest or fraudulent execution of deed of transfer containing false statement of consideration' interpreted in law?
It is interpreted based on the Indian Penal Code and relevant case law.
Where is Section 423 IPC applicable?
Its application depends on the legal context and the nature of the offence involved.
Can you give a practical example for Section 423?
Examples include real-life cases involving dishonest or fraudulent execution of deed of transfer containing false statement of consideration.
Is Section 423 used along with other IPC sections?
Yes, it is often cited alongside related criminal provisions.
How do courts interpret Section 423 IPC?
Courts interpret it using past judgments and statutory interpretations.
Why is Section 423 significant?
It holds importance in the framework of criminal law.