What Is BNS Section 321?

Bharatiya Nyaya Sanhita, 2023 - Section 321: Dishonestly or Fraudulently Preventing Debt Being Available for Creditors

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.

Brief Detail

BNS Section 321 addresses the act of dishonestly preventing a debt from being available for the repayment of debts owed by oneself or another person. This section ensures that debtors cannot obstruct lawful claims of creditors, thus promoting financial integrity.

Question & Answers

Q1: What actions are considered as preventing a debt from being available?

A1: Actions that involve dishonestly or fraudulently obstructing the process of making a debt available for payment to creditors are considered as preventing a debt from being available.

Q2: What are the penalties under Section 321 for preventing a debt from being available?

A2: Individuals found guilty may face imprisonment for a term that may extend up to two years, a fine, or both.

Q3: How does this section protect creditors’ rights?

A3: Section 321 safeguards creditors by ensuring that debtors cannot fraudulently prevent debts owed to them from being realized, thus ensuring the legal recourse for recovering dues.

Example

Example Scenario:

If a person takes steps to hide or transfer a debt owed to him to avoid its claim by creditors, this would be deemed as preventing the debt from being available under Section 321.

Summary

BNS Section 321 outlines the legal repercussions for dishonestly or fraudulently preventing a debt from being available for creditors, establishing penalties to uphold the integrity of financial obligations and protect creditor rights.