Provision

Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfers or causes to be transferred to any person, without adequate consideration, any property, intending thereby to prevent, or knowing it to be likely that he will thereby prevent the distribution of that property according to law among his creditors or the creditors of any 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.


Simply put

This section makes dishonest or fraudulent removal or concealment etc. of property to prevent distribution among creditors a punishable offence. It states that whoever either dishonestly or fraudulently removes, conceals or delivers to any person, or transfers or causes to be transferred to any person, any property without adequate consideration, with the intention thereby to prevent, or with the knowledge that it is likely that he will thereby prevent, the distribution of that property according to law among his creditors or the creditors of any other person, shall be punished with simple or rigorous imprisonment for a term extending up to two years, or with fine, or with both.



Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!


You might like reading these


Most Consulted Advocates

Choose from our most consulted lawyers across India and get instant legal advice.

Top Consulted Advocates

Choose from our most consulted lawyers across India and get instant legal advice.