Bharatiya Nyaya Sanhita, 2023
Section 321 BNS: Dishonestly or Fraudulently Preventing Debt Being Available for Creditors
Section 321 of the Bharatiya Nyaya Sanhita, 2023 punishes dishonest or fraudulent conduct that prevents a debt or demand due to the offender, or due to another person, from being made available according to law for payment of debts.
Section 321 BNS - Statutory Provision
Section 321 applies where a person dishonestly or fraudulently prevents a debt or demand due to himself, or due to another person, from being made available according to law for payment of his debts or the debts of that other person.
The provision forms part of the BNS group dealing with fraudulent deeds and dispositions of property. Its focus is on keeping a receivable, rather than physical property, away from the lawful reach of creditors.
Essential Ingredients of Section 321 BNS
The principal ingredients are:
- there must be a debt or demand due to the accused or to another person;
- the debt or demand must be capable of being made available according to law for payment of debts;
- the accused must prevent that debt or demand from being so made available; and
- the prevention must be dishonest or fraudulent.
The dishonest or fraudulent character of the conduct is essential. A mere dispute about whether a debt exists, or a lawful arrangement concerning payment, does not by itself establish the offence.
Debt or Demand Due to the Offender or Another Person
Section 321 is not confined to money personally owed to the accused. It also applies where the debt or demand is due to another person and is dishonestly or fraudulently prevented from becoming legally available for payment of that person's debts.
In practical terms, the provision addresses the deliberate shielding of receivables that should otherwise be available to meet lawful creditor claims.
Dishonest or Fraudulent Prevention
The section uses the expressions "dishonestly" and "fraudulently." Accordingly, the prosecution must establish more than the mere fact that a debt was not realised or paid over. The prevention must carry the culpable mental element required by the BNS.
The manner of prevention may vary with the facts. The central statutory question is whether the accused dishonestly or fraudulently kept the debt or demand from being made available according to law for payment of debts.
Creditors Protected by Section 321
The section protects creditors of the person to whom the debt or demand is due. Where the receivable belongs to the offender, the relevant creditors are the offender's creditors. Where it belongs to another person, the provision extends to the debts of that other person.
Punishment, Cognizability, Bail and Trial Court
| Provision | Section 321 BNS |
|---|---|
| Offence | Dishonestly or fraudulently preventing a debt or demand from being made available according to law for creditors |
| Punishment | Imprisonment of either description up to two years, or fine, or both |
| Cognizable | No - non-cognizable |
| Bailable | Yes |
| Trial court | Any Magistrate |
Compounding Under the BNSS
Section 321 is included in the compounding table under the Bharatiya Nagarik Suraksha Sanhita, 2023. The persons identified as competent to compound the offence are the creditors affected by the dishonest or fraudulent prevention.
Compounding should be considered with reference to the precise charge and the procedural requirements of the BNSS.
Official Legal Sources
For authoritative statutory wording, procedural classification and commencement information, consult India Code and the Ministry of Home Affairs resources listed in the right sidebar. The official BNS, BNSS First Schedule and Gazette material prevail in case of any discrepancy in a secondary source.
Frequently Asked Questions
What does Section 321 BNS punish?
It punishes dishonest or fraudulent prevention of a debt or demand due to the offender or another person from being made available according to law for payment of debts.
What is the punishment under Section 321 BNS?
The punishment is imprisonment of either description up to two years, or fine, or both.
Is Section 321 BNS cognizable?
No. It is non-cognizable.
Is Section 321 BNS bailable?
Yes. It is bailable.
Which court tries Section 321 BNS?
The offence is triable by any Magistrate.
Can Section 321 be compounded?
Yes. The BNSS compounding table identifies the creditors affected as the persons who may compound the offence, subject to the applicable procedural requirements.
This page provides general legal information. Application of Section 321 depends on the facts, evidence and law applicable to the individual case.