Section 422 IPC: Fraudulently Preventing a Debt from Being Available to Creditors
Section 422 of the Indian Penal Code, 1860, punished dishonest or fraudulent obstruction of a debt or demand that should legally be available to pay creditors. For offences governed by the Bharatiya Nyaya Sanhita, 2023 (BNS), the corresponding provision is Section 321 BNS.
What does Section 422 IPC mean?
The provision concerns a debt or enforceable demand that is owed to a person, but is dishonestly or fraudulently kept out of the pool of assets legally available to discharge that person's liabilities. It protects the lawful claims of creditors against intentional interference with amounts recoverable from third parties.
Original wording of Section 422 IPC
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.
The wording above reproduces the substantive provision from the original page, with its typographical spacing corrected.
Corresponding provision: Section 321 BNS, 2023
Section 321 BNS addresses dishonestly or fraudulently preventing a debt or demand due to a person from being made available, according to law, for payment of that person's debts. It substantially carries forward the offence under IPC Section 422. The prescribed punishment is imprisonment of either description for up to two years, or fine, or both.
Read the authoritative legislation on India Code, including the Bharatiya Nyaya Sanhita, 2023 (official PDF) and the Indian Penal Code, 1860 (check the India Code portal if a document URL changes).
Essential ingredients of the offence
- A debt or demand exists: An amount or enforceable claim is due to the accused or another person.
- Availability for lawful payment: The debt or demand is one that could be made available under law for satisfying that person's debts.
- Prevention: The accused acts to keep the debt or demand from being available for that purpose.
- Dishonest or fraudulent intent: The prevention is accompanied by the required culpable state of mind, not merely a legitimate dispute or innocent delay.
Under the statutory definitions, dishonestly involves an intention to cause wrongful gain or wrongful loss, while fraudulently requires an intent to defraud. The surrounding facts and evidence determine whether these elements are present.
Illustrative example
A debtor has a recoverable payment due from a customer. In order to prevent lawful recovery by creditors, the debtor intentionally arranges for the customer to conceal or divert the payment through a sham arrangement. Depending on the evidence, such conduct may engage Section 422 IPC or Section 321 BNS. A bona fide dispute about whether a payment is due is not, by itself, proof of the offence.
Punishment and comparison
| Issue | IPC Section 422 | BNS Section 321 |
|---|---|---|
| Subject | Fraudulently preventing a debt from being available for creditors | Corresponding offence |
| Maximum imprisonment | Two years | Two years |
| Fine | Fine, or imprisonment, or both | Fine, or imprisonment, or both |
| Relevant period | Conduct governed by IPC | Conduct governed by BNS from 1 July 2024 |
Complaint, investigation and bail
Whether an offence is cognizable or non-cognizable, bailable or non-bailable, and the competent court are governed by the applicable criminal procedure law and its First Schedule. For current cases consult the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Other offences alleged in the same transaction may affect the investigation and bail position. A civil recovery action and criminal proceedings are distinct, and a mere unpaid debt does not automatically establish criminal wrongdoing.
Difference from related offences
Section 421 IPC / Section 320 BNS concerns dishonest or fraudulent removal, concealment, delivery or transfer of property to prevent lawful distribution among creditors. Section 422 IPC / Section 321 BNS specifically concerns preventing a debt or demand due from being made available for payment of debts. The relevant transaction and the precise alleged act determine the appropriate charge.
Frequently asked questions
What is the current equivalent of IPC Section 422?
Section 321 of the Bharatiya Nyaya Sanhita, 2023, is the corresponding provision.
What is the maximum punishment?
Imprisonment of either description for up to two years, or fine, or both, under the relevant provision.
Is failing to pay a creditor automatically an offence?
No. The prosecution must establish the statutory elements, including dishonest or fraudulent prevention of an otherwise legally available debt or demand.
Does Section 422 IPC still matter after 1 July 2024?
Yes. It remains relevant to alleged offences governed by the earlier IPC and to the interpretation of the corresponding BNS offence, subject to applicable transitional law.
Official legal references
- India Code - official repository of central legislation
- Bharatiya Nyaya Sanhita, 2023
- Ministry of Home Affairs
This article provides general legal information. The facts, applicable commencement and savings provisions, and current statutory text should be checked before relying on it in a particular matter.