Code: Section 321 BNS
Offense Defined
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.
Explanation of Section 321 BNS
Section 321 of the Bharatiya Nyaya Sanhita (BNS) addresses fraudulent activities that hinder the lawful recovery of debts. This provision is designed to prevent actions that obstruct creditors from receiving payments legally owed to them. Such actions can include fraudulent transfers, concealment of assets, or any deliberate attempt to make a debt inaccessible for legal enforcement.
The key elements of the offense are:
- Dishonest or fraudulent intent: The person must intentionally prevent the availability of the debt.
- Impact on debt recovery: The act must hinder the process of lawfully recovering the debt.
- Applicability to debts owed to oneself or others: The offense applies whether the debt belongs to the person committing the act or to another party.
Illustration
Example 1: Concealing Assets to Evade Debt Payment
A debtor, aware that a large loan repayment is due, transfers his assets to a relative without adequate consideration to prevent creditors from claiming them. This act hinders the legal recovery of the debt and falls under Section 321 BNS.
Example 2: Blocking Legal Claims
A business owner deliberately hides important financial documents related to outstanding loans, making it impossible for creditors to verify and claim the debt. This fraudulent obstruction is punishable under Section 321.
Common Questions and Answers on Section 321 BNS
1. What does Section 321 BNS prohibit?
- Answer: It prohibits dishonest or fraudulent actions that prevent debts or demands from being lawfully available for payment to creditors.
2. What kinds of actions can be considered fraudulent under this section?
- Answer: Actions like transferring assets without fair consideration, concealing financial records, or obstructing legal procedures to prevent debt recovery.
3. What are the punishments under Section 321 BNS?
- Answer: The offender may face imprisonment for up to two years, a fine, or both.
4. Does this law apply to both personal and business debts?
- Answer: Yes, Section 321 applies to all types of debts, whether personal loans, business-related debts, or any other financial obligations.
Conclusion
Section 321 of the BNS is a vital provision aimed at protecting the rights of creditors and maintaining the integrity of financial transactions. By penalizing fraudulent acts that obstruct debt recovery, the law ensures that individuals and businesses cannot evade their financial obligations through dishonest means.
