Indian Penal Code, 1860

Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors.—

Section

421

Punishment

Imprisonment up to Two Year(s) + Fine

Cognizable

Non-cognizable

Bailable

Bailable

Compoundable

Non-Compoundable (Refer to CrPC 320 for exceptions)

Trial Court

Any Magistrate

Bare Act Text

421. Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors.— Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfer 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.
According to the official bare act, this legal offense is defined as: 421. Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors.— Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfer 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.
The punishment for this specific offense is outlined under the law as: Imprisonment up to Two Year(s) + Fine
Under the Indian Penal Code, this specific offense is classified as a Bailable offense.
The legal status regarding police arrest without a warrant is that this offense isNon-cognizable.
Cases pertaining to this specific IPC section are triable by the Any Magistrate.
The compoundable nature of this offense, meaning whether the parties can settle it out of court, is classified as: Non-Compoundable (Refer to CrPC 320 for exceptions).

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