Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors
What this section does
This section penalises a debtor (or a person acting on behalf of another debtor) who dishonestly or fraudulently removes, conceals, delivers, or transfers property without adequate consideration, with the intent or knowledge that doing so will prevent the lawful distribution of that property among creditors.
AI-generated plain-language summary. For the binding statutory text, see India Code (official).
Quick reference
- Punishment
- Imprisonment of either description for not less than 6 months and up to 2 years, or fine, or both (mandatory minimum of 6 months).
- Triable by
- Magistrate of First Class
- Cognizable
- No
- Bailable
- Yes
- Compoundable
- Depends
Ingredients (what prosecution must prove)
- The accused removed, concealed, delivered, transferred, or caused to be transferred any property
- Such act was done dishonestly or fraudulently
- It was done without adequate consideration
- The accused intended thereby to prevent, or knew it was likely to prevent, the distribution of that property according to law among his creditors or the creditors of any other person
Practitioner note
Mandatory minimum sentence of 6 months. The section covers transfers made to benefit creditors of 'any other person', not only the accused's own creditors. Transfers without adequate consideration are the key trigger.
Derived from IPC s.421.
Read the official text
For the binding statutory text of BNS Section 320, refer to the Gazette of India or the India Code official website.
Why this matters
BNS Section 320 forms part of Bharatiya Nyaya Sanhita which replaced the Indian Penal Code 1860 on 1 July 2024. Any new filing, FIR, charge sheet, or bail application made on or after that date should cite the new section number. References to the old act in legacy documents remain valid for matters that arose before the changeover.