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BNS 2024ACTIVE FRAMEWORK
Section 323
Fraudulent Execution of Deed of Transfer After Decree
Replaces colonial-era: IPC 424
BailableCognizable: Non-CognizableAny Magistrate
Reform Highlights
1
Renumbered from IPC 424 to BNS 323.
2
2-year maximum preserved.
3
Covers transfers and concealment after any court decree or order.
THE STATUTE
The Clause
Whoever dishonestly or fraudulently removes, conceals, transfers or delivers to any person any property or any interest therein, intending thereby to prevent that property or interest therein from being taken in execution of a decree or order which has been made, or knowing it to be likely that such property or interest will be taken in execution of such decree or order, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.
Legal Commentary
Section 323 specifically addresses the contemptuous act of moving assets to avoid execution of a court decree — one of the most direct forms of interference with the justice system. When a court passes a decree or order requiring payment, the judgment debtor who then systematically moves, conceals, or transfers their assets to prevent enforcement of that decree commits this offence. This is a particularly serious form of contempt because it renders the court's adjudicatory function meaningless — if judgment debtors could simply move assets after losing a case, court decrees would be worthless. The provision covers not just the judgment debtor but anyone who receives property transferred under these fraudulent circumstances.
Case Simulations
"A judgment debtor who transfers their house to a sibling for nominal consideration after a decree is passed — Section 323."
"Concealing bank accounts and investments after a court orders payment to a creditor — Section 323."
Expert Insights
Yes — if the sale was dishonestly made to prevent execution of the court decree against them, it constitutes an offence under Section 323. Courts examine whether the transfer was made at fair value or was structured specifically to defeat the decree.