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Section 322: Dishonest Execution of Transfer Deed Containing False Consideration Statement

Bharatiya Nyaya Sanhita • Chapter XVII: Of Offences Against Property • Official Statutory Text & Legal Guide

Chapter XVII: Of Offences Against Property
Any Magistrate
Bailable
Non-Cognizable
Formerly Sec 423 IPC
Section 321 All 358 Sections of Bharatiya Nyaya Sanhita Section 323

Legal Commentary & Landmark Judgments: Section 322

Section 322 penalises dishonestly or fraudulently signing, executing, or becoming a party to any deed or instrument which purports to transfer property and contains any false statement relating to consideration.

  • Transfer Deed: Sale deed, mortgage, or transfer instrument.
  • False Statement of Consideration: Contains a false statement regarding consideration or for whose benefit the deed is really executed.
  • Fraudulent Intent: Executed to evade stamp duty, defraud creditors, or conceal benami ownership.
Key Landmark Precedents:
  • Babu Lal v. State of U.P. (1994) 1 SCC 688: Held that execution of sham sale deeds containing grossly undervalued consideration to defeat pre-emption or creditor claims constitutes an offence.
  • A.V. Papayya Sastry v. Govt. of A.P. (2007) 4 SCC 221: The Supreme Court held that fraudulent conveyances aimed at deceiving revenue authorities unravel all subsequent transactions.
Courtroom Practice & Strategic Litigation Guidance:

Cross-reference the registered deed consideration with bank RTGS transfers. A wide divergence between deed recitals and actual banking flows establishes the false statement of consideration.

Section 321 All 358 Sections of Bharatiya Nyaya Sanhita Section 323