Section 321 of BNS : Section 321: Dishonestly or fraudulently preventing debt being available for creditors.

Explanation using Example

Example 1:

Ravi owns a small business and has taken a loan from a local bank. He is struggling to repay the loan and has several creditors demanding payment. To avoid paying his debts, Ravi transfers his valuable assets, including his car and some expensive machinery, to his brother under a fake sale agreement. By doing this, Ravi dishonestly prevents these assets from being available to his creditors for repayment. Under Section 321 of The Bharatiya Nyaya Sanhita 2023, Ravi can be punished with imprisonment for up to two years, or with a fine, or both.

Example 2:

Meena owes a significant amount of money to various creditors due to her failed business venture. To avoid paying her debts, she fraudulently creates a false loan agreement showing that she owes a large sum to her friend, Priya. Meena then claims that all her available funds are being used to repay this fake loan to Priya, thereby preventing her actual creditors from accessing her funds. Under Section 321 of The Bharatiya Nyaya Sanhita 2023, Meena can be punished with imprisonment for up to two years, or with a fine, or both.