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Section 323: Fraudulent Removal or Concealment of Property

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 424 IPC
Section 322 All 358 Sections of Bharatiya Nyaya Sanhita Section 324

Legal Commentary & Landmark Judgments: Section 323

Section 323 penalises dishonestly or fraudulently concealing, removing, assisting in concealment, or releasing any demand or claim to which one is entitled, intending to defraud creditors.

  • Concealment or Removal of Property: Hiding movable property, gold, or shares, or relinquishing a valid legal claim.
  • Fraudulent Intent: Intending to cause wrongful loss to creditors or defeat execution decrees.
  • Residual Fraudulent Disposition: Complements Sections 320-322 as an omnibus fraudulent concealment offence.
Key Landmark Precedents:
  • S.P. Chengalvaraya Naidu v. Jagannath (1994) 1 SCC 1: Reaffirmed that non-disclosure and physical concealment of assets during judicial execution proceedings is criminal deceit.
  • State of Maharashtra v. Babulal (1993) Supp 3 SCC 419: Affirmed that assisting a judgment-debtor to secret attached inventory attracts penal liability.
Courtroom Practice & Strategic Litigation Guidance:

Examine bailiff execution reports noting that premises were found emptied hours prior to court attachment. Video recordings and transport e-way bills establish fraudulent removal.

Section 322 All 358 Sections of Bharatiya Nyaya Sanhita Section 324