Dishonestly or fraudulently preventing debt being available for creditors
Section 321 of the Bharatiya Nyaya Sanhita, 2023 deals with dishonestly or fraudulently preventing debt being available for creditors. 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 ye The Act came into force on 01 Jul 2024.
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.
Section 321, The Bharatiya Nyaya Sanhita, 2023 (Act 45 of 2023).
Replaces a provision of the Indian Penal Code
IPC 422 Dishonestly or fraudulently preventing debt being available for creditors Text carried over almost unchanged 100%
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 The repealed enactment still governs what happened while it was in force.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 |
|---|---|---|---|---|
| Dishonest or fraudulently preventing from being made available for his creditors a debt or demand due to the offender. | Imprisonment for 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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Asim Srivastava vs State of Bihar& ANR.
Decided under Indian Penal Code 422, which this section replaces. The court did not have this Act before it.
Court's Decision & Legal Precedent
Section 142 of the Negotiable Instruments Act mandates that no court shall take cognizance of any offence punishable under Section 138 except upon a written complaint made by the payee or holder in due course of the cheque. An FIR filed by an informant with the police is not a maintainable mode of initiating proceedings for cheque dishonour offences. A Magistrate cannot take cognizance on the basis of a charge-sheet submitted by police following an FIR, as this circumvents the statutory requirement for a written complaint from the payee. The procedural safeguard of serving a notice of demand on the drawer within the stipulated period is a condition precedent for filing a complaint under Section 138 NI Act.
On this section: Dishonestly or fraudulently making false entry in account; cited in the charge-sheet but not specifically analyzed in the judgment
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 321
What have the courts held on Section 321 of the Bharatiya Nyaya Sanhita?
Asim Srivastava vs State of Bihar& ANR. (06 Dec 2018) is the leading judgment on this section among those set out below, though it was decided under IPC 422, which this section replaced -- the court never mentioned this Act: Dishonestly or fraudulently making false entry in account; cited in the charge-sheet but not specifically analyzed in the judgment.
Is Section 321 of the Bharatiya Nyaya Sanhita bailable?
Bailable, under the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023.
Is Section 321 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 321 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 321, section 321 BNS, section 321 of the Bharatiya Nyaya Sanhita. People searching for it also type bns 321 2 and bns 321 4. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Asim Srivastava vs State of Bihar& ANR. (06 Dec 2018).
What should I read with Section 321 of the Bharatiya Nyaya Sanhita, and has it changed?
It carries forward IPC 422 (Dishonestly or fraudulently preventing debt being available for creditors), so the judgments decided under that provision are the case law on this one.
When did Section 321 of the Bharatiya Nyaya Sanhita come into force?
Section 321 of the Bharatiya Nyaya Sanhita, cited as BNS 321, 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.
Other sections of this Act
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- 101. Murder1177 words
- 303. Theft1104 words
- 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.