Section 421 of IPC : Section 421: Dishonest or fraudulent removal or concealment of property to prevent distribution among creditor

Explanation using Example

Example 1:

Rajesh runs a small business and has taken loans from several creditors to keep his business afloat. However, his business starts failing, and he realizes he won't be able to repay his debts. To avoid his creditors from claiming his assets, Rajesh transfers his expensive car and some valuable machinery to his brother without any payment or consideration. Rajesh's intention is to prevent his creditors from seizing these assets to recover their dues. Under Section 421 of the Indian Penal Code, Rajesh can be prosecuted for dishonestly transferring property to prevent its distribution among his creditors.

Example 2:

Meena owes a significant amount of money to various creditors. Knowing that she is about to be declared bankrupt, Meena decides to hide her gold jewelry and some cash by giving them to her friend, Priya, for safekeeping. Meena does this to ensure that her creditors ...

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