Business Setup

Tax & Compliance

Trademark & IP

Documentation

Others

user-login
Consult an Expert

Consult an Expert

Right Arrow
Business Setup

Business Setup

Right Arrow
Tax & Compliance

Tax & Compliance

Right Arrow
Trademark & IP

Trademark & IP

Right Arrow
Documentation

Documentation

Right Arrow
Others

Others

Right Arrow
More

More

Right Arrow

Login

Section 321 falls under Chapter 17 of the Bharatiya Nyaya Sanhita (BNS). Chapter 17 covers offences against property. Each section under this chapter deals with different offences related to various property related crimes. The section specifically deals with non-payment of debts. Let us take a closer look at its provisions.

Definition of BNS Section 321

Section 321 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:

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.

Explanation and Illustration of Section 321

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

  • Offence

    When a person who owes money for any reason and performs any action that prevents the creditor from claiming or receiving the money owed to them through dishonest or unlawful means shall be considered an offender under the provisions of this section.

    This section does not specify any particular action that may be taken in that direction, but if any particular action by a person leads to a creditor being prevented from claiming and receiving their dues and it is found that such an action was performed specifically to prevent such payment, then it shall be considered an offence under the provisions of this section.

  • Punishment

    Any person found guilty of deliberately preventing a creditor from collecting their dues 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:

    • The offender is forced or coerced into performing the offence
    • The offender is a minor or not of sane mind.
  • However, there may be other sections under the BNS under which the above actions can be prosecuted and while they may be disqualified under the provisions of this section, such actions will still be punishable under the provisions of those respective sections of the BNS.

  • Illustration

    A manipulates his electricity meter to make sure that he doesn’t get billed for consuming electricity. A is an offender under the provisions of this section.

Disclaimer: The examples provided are for educational purposes only and do not constitute legal advice. They should not be used for legal proceedings or decision-making. For specific legal matters, please consult a qualified legal professional.

Key Points in BNS Section 321

This section deals with: Dishonestly or fraudulently preventing debt being available for creditors

Description of offence:

  • Any person who performs any dishonest or fraudulent act in order to prevent availability of debt to creditors shall be considered an offender under this section.

  • Punishment for offence:
  • Any person found guilty of deliberately preventing a creditor from collecting their dues shall be punished with imprisonment for a term which may extend to two years, or with fine, or with both.

  • Exceptions to offence:
  • The offender has been coerced into committing the offence
  • The person is a minor or not of sane mind
    1. Differences Between Section 321 of BNS and its Equivalent IPC Section

      The BNS came into force on July 1, 2024, effectively replacing the Indian Penal Code. Section 321 of BNS replaces IPC Section 422. Let us look at the changes that have been made in the provisions of the new section in comparison to the old one.

      BNS Sections/Subsections Subject IPC Sections Summary of Comparison
      321 Dishonestly or fraudulently preventing debt being available for creditors. 422 No change.

      Why Choose Vakilsearch for Bharatiya Nyaya Sanhita (BNS)?

      Understanding the new Bharatiya Nyaya Sanhita (BNS) laws can be confusing, but Vakilsearch is here to make it easy for you. Here’s why we’re the right choice:

      • Expert Help: Our lawyers know the BNS sections inside out and can guide you through how the new laws apply to you or your business.
      • Simple and Clear: We break down all the legal jargons into simple language, so you can easily understand what steps to take.
      • Personalised Service: Whether you need help with specific BNS sections for women or other legal concerns, we provide advice and support tailored to your situation.
      • Experienced Team: We’ve helped thousands of clients understand about the old IPC sections, and now we’re ready to help you transition smoothly to the new BNS laws.

      FAQs about Section 321 of the Bharatiya Nyaya Sanhita (BNS)

      Committing any dishonest act to prevent a creditor from recovering his or her debt is considered a preventing debt availability under section 321.
      No. This section deals with failure to meet debts through dishonest means.
      Any person found guilty of deliberately preventing a creditor from collecting their dues shall be punished with imprisonment for a term which may extend to two years, or with fine, or with both.
      Yes. It applies to any act of fraudulent prevention of debt availability irrespective of the kind of debt.
      No. This section focuses on the intent to commit fraud rather than non payment of debts. So if there is intent to commit fraud for even part of that debt, then the person is an offender under this section, irrespective of whether the other part has been duly paid or not.
       Section 321 of BNS

      footer-service

      By continuing past this page, you agree to our Terms of Service Cookie Policy Privacy Policy  and  Refund Policy  © - Uber9 Business Process Services Private Limited. All rights reserved.

      Uber9 Business Process Services Private Limited, CIN - U74900TN2014PTC098414, GSTIN - 33AABCU7650C1ZM, Registered Office Address - F-97, Newry Shreya Apartments Anna Nagar East, Chennai, Tamil Nadu 600102, India.

      Please note that we are a facilitating platform enabling access to reliable professionals. We are not a law firm and do not provide legal services ourselves. The information on this website is for the purpose of knowledge only and should not be relied upon as legal advice or opinion.