BNS Section 245: Fraudulently Suffering Decree For Sum Not Due

Explanation and Illustration of BNS Section 245

This section is applicable to any person within the sovereign borders of India, whether citizen, resident or otherwise. It deals with the offence of filing a false case. Let us break down the section to get a better understanding of it.

Offence

When one person asks another person to file a fake case against himself or herself for any fraudulent means or ends, then it shall be considered an offence under the provisions of this section. A person may want to have a case filed against themselves for many fraudulent reasons. Some examples are:

To avoid paying money owed to someone else

To make an insurance claim against such losses for which there may be a policy

To show losses in finances or feign bankruptcy to avoid paying taxes

To avoid seizure of property by the government

The section gives specific illustrations of the kind of fake cases that may be filed that count as an offence:

A case for a sum not due: This refers to having a person file a fake case for an amount that was never owed or having a creditor file a case for an amount that is not yet due.

A case for a larger sum than is due: This refers to asking a creditor to file a fake case by inflating the amount that is due by either charging exorbitant interest or penalty or inflating the original principal sum.

A case for any property: This refers to asking a person to file a fake case for settlement of debt by seizing a property

A case for interest in property to which such person is not entitled: This refers to asking someone to file a fraudulent case to stake claim to a property which they have no legal entitlement otherwise; neither by birthright nor any agreement nor under any law.

A case for an issue or a claim has been satisfied: This refers to approaching someone whose debt or claim has already been satisfied by the person and asking them to file a case by falsely stating that the debt or claim has not yet been satisfied.

However, there is one very important qualifying factor that must be taken into consideration before such an act can be considered an offence. The person must suffer suffers a decree or order to be passed against him. In other words, mere filing case is not enough. There has to actually be a judgement or decree ordering the payment of the false dues or the execution and seizure of the contentious property.

Punishment

If any of the above actions are performed and an order or decree is passed to that extent, then such an action shall be prosecuted under the provisions of section 245 and if found guilty shall be punished with imprisonment for a term which may extend to two years, or with fine, or with both.

The above actions may not be an offence under this section if:

If the case is filed for a genuine amount even though the intention is to avoid paying to another party.

If the court or competent authority does not pass a decree

Illustration

A files a case against Z for money owed. Z, knowing that A is likely to win the case and obtain a court order against him, approaches B. B, who actually has no claims against Z, files a fake claim for compensation against Z on Z’s insistence. Z does not contest B’s charges and accepts B’s claim causing the court to pass an order against Z. Later Z settles the matter with B by paying him a small amount as remuneration for filing the false case and Z avoids paying A by claiming that he became bankrupt after settling B’s case. Z has committed an offence under this section.