Bailabel Type : bailable

Description

IPC Section 421 addresses the dishonest or fraudulent removal or concealment of property with the intent to prevent it from being distributed among creditors during the settlement of a debtor's liabilities. 

Description:

1. Dishonest or Fraudulent Removal/Concealment:

   • The section criminalizes actions where a person dishonestly or fraudulently removes or conceals property that could be used to pay off debts.
   • The intent behind this act is to prevent the property from being available to creditors during the process of debt recovery or liquidation.

2. Context:

   • This offense usually occurs when an individual, facing bankruptcy or liquidation, tries to hide or transfer property to avoid having it seized or used to pay creditors.
   • The act may include transferring assets to third parties, hiding assets in secret locations, or making fraudulent declarations about the ownership or value of property.

3. Objective:

   • The intent is to defraud the creditors, preventing them from accessing the debtor's property for the purpose of satisfying the outstanding debt.

Punishment

Imprisonment:

• The offender may be imprisoned for up to 2 years.

Fine:

• The court may also impose a fine, or

Both:

• Both imprisonment and fine may be imposed depending on the circumstances and severity of the crime.