Dishonestly or fraudulently preventing debt being available for creditors
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Summary
If someone dishonestly or fraudulently keeps a debt or claim owed to themselves or another from being made available in the way the law requires for payment of debts, they commit an offence. It applies when a person hides, destroys, or otherwise prevents a debt or claim from reaching creditors. Punishment is up to two years imprisonment, or a fine, or both.
Example
Priya is owed money by Meera. Arjun hides Meera's promissory note so Priya cannot use it to pay her creditors. Because Arjun dishonestly prevented that debt from being made available according to law, he can be punished with up to two years imprisonment, a fine, or both.
Bare Act
Enacted textWhoever 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.
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