Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors
Section 320 of the Bharatiya Nyaya Sanhita, 2023 deals with 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 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 prope The Act came into force on 01 Jul 2024.
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 shall not be less than six months but which may extend to two years, or with fine, or with both.
Section 320, The Bharatiya Nyaya Sanhita, 2023 (Act 45 of 2023).
Replaces a provision of the Indian Penal Code
IPC 421 Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors Text carried over almost unchanged 98%
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
How this offence is classified
From the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023, which classifies every offence under the Sanhita. Cognizable means a police officer may arrest without warrant; bailable means bail is a matter of right rather than of the court's discretion.
| Offence | Punishment | Cognizable | Bailable | Triable by |
|---|---|---|---|---|
| Fraudulent removal or concealment of property, etc., to prevent distribution among creditors. | Imprisonment of not be less than 6 months but which may extend to 2 years, or fine, or both. | Non-cognizable. | Bailable. | Any Magistrate. |
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Atul Sen vs State of H.p.
Decided under Indian Penal Code 421, which this section replaces. The court did not have this Act before it.
Court's Decision & Legal Precedent
A petition seeking quashing of judicial orders is not maintainable when the prayer clause seeks relief against orders directing FIR registration under Section 229 IPC, but the actual operative orders (as corrected by the trial court) direct FIR registration under Section 229A IPC. The petitioner must file a fresh petition specifically challenging the corrected operative order to maintain the petition. The principle of 'relief cannot exceed prayer clause' applies strictly to maintain procedural integrity.
On this section: Cheating; cited in context of bail bond forfeiture and property attachment procedures
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Aslam Azad @ Md. Aslam Azad vs State of Bihar& ANR.
Decided under Indian Penal Code 421, which this section replaces. The court did not have this Act before it.
Court's Decision & Legal Precedent
When an accused who has previously failed to comply with bail conditions demonstrates a material change in circumstances and willingness to comply with modified conditions, and when such modified conditions provide adequate safeguards against flight risk and ensure compliance, bail may be re-granted by the court, particularly where the accused has already undergone significant incarceration.
On this section: Dishonestly using false weight or measure - charge against the petitioner
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Aslam Azad @ Md. Aslam Azad vs State of Bihar& ANR.
Decided under Indian Penal Code 421, which this section replaces. The court did not have this Act before it.
Court's Decision & Legal Precedent
Bail may be granted in criminal breach of trust cases where the accused demonstrates willingness to make complete restitution of the misappropriated amount within a reasonable timeframe, subject to strict conditions including furnishing of bail bond with sureties and periodic installment payments, with confirmation contingent on production of evidence of full restitution.
On this section: Cheating - tertiary charge against the petitioner
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 320
What have the courts held on Section 320 of the Bharatiya Nyaya Sanhita?
Atul Sen vs State of H.p. (19 Nov 2020) is the leading judgment on this section among those set out below, though it was decided under IPC 421, which this section replaced -- the court never mentioned this Act: Cheating; cited in context of bail bond forfeiture and property attachment procedures. Another 2 judgments on this section are set out below. They run from 2017 to 2020.
Is Section 320 of the Bharatiya Nyaya Sanhita bailable?
Bailable, under the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023.
Is Section 320 of the Bharatiya Nyaya Sanhita cognizable?
Non-cognizable. "Cognizable" means a police officer may arrest without warrant; "non-cognizable" that they may not. An offence under this section is triable by Any Magistrate.
How do I find court cases under Section 320 of the Bharatiya Nyaya Sanhita?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: BNS 320, section 320 BNS, section 320 of the Bharatiya Nyaya Sanhita. People searching for it also type bns 320 2. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Atul Sen vs State of H.p. (19 Nov 2020).
What should I read with Section 320 of the Bharatiya Nyaya Sanhita, and has it changed?
It carries forward IPC 421 (Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors), so the judgments decided under that provision are the case law on this one.
When did Section 320 of the Bharatiya Nyaya Sanhita come into force?
Section 320 of the Bharatiya Nyaya Sanhita, cited as BNS 320, came into force on 01 Jul 2024, having been enacted on 25 Dec 2023. It is in force as at the date shown on this page.
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- 3. General explanations858 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.