Dishonestly or fraudulently preventing debt being available for creditors

What this section does

This section penalises a person who dishonestly or fraudulently prevents a debt or demand owed to himself or another from being made available under law for payment of creditors. It targets deliberate obstruction of the legal process by which debts become available for satisfaction. Both the debtor acting against his own creditors and a third party acting against another's creditors are covered.

AI-generated plain-language summary. For the binding statutory text, see India Code (official).

Quick reference

Punishment

Imprisonment of either description for a term which may extend to two years, or fine, or both.

Triable by

Magistrate of First Class

Cognizable

No

Bailable

Yes

Compoundable

No

Ingredients (what prosecution must prove)

1. The accused acted dishonestly or fraudulently
2. There existed a debt or demand due to the accused or to another person
3. The accused prevented that debt or demand from being made available according to law
4. The prevention was for the purpose of defeating payment of debts

Derived from IPC s.422.