Section 422 IPC: Dishonestly or fraudulently preventing debt being available for creditors

Indian Penal Code, 1860

Section 422 IPC at a Glance

Section 422 IPC deals with dishonestly or fraudulently preventing debt being available for creditors. It is bailable and non-cognizable, triable by any Magistrate; from 1 July 2024 it is replaced by Section 321 BNS.

Punishment

Imprisonment of either description for a term which may extend to two years.

Bailable ⓘNon-Cognizable ⓘCompoundable ⓘ🏛️ Any Magistrate ⓘ
BNS Equivalent

Section 321 →

Section 422 IPC Bare Act Text

422. Dishonestly or fraudulently preventing debt being available for creditors

Whoever 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.

Source: Section 422, Indian Penal Code, 1860

Section 422 IPC in Simple Words

Section 422 of the Indian Penal Code (IPC) punishes dishonestly or fraudulently preventing any debt or demand due to oneself or to another from being made available according to law for payment of debts. Whoever commits this offence is punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

Under the First Schedule to the Code of Criminal Procedure, 1973, the offence is non-cognizable, bailable, and triable by any Magistrate. The offence is compoundable without the permission of the court by the affected creditors under Section 320(1) CrPC.

Ingredients of Section 422 IPC

  • A debt or demand was due to the accused himself or to any other person
  • The debt or demand was one that would according to law be available for the payment of the debts of the accused or of such other person
  • The accused prevented that debt or demand from being made available according to law for such payment
  • The accused acted dishonestly or fraudulently in preventing the availability of the debt or demand

Punishment Under Section 422 IPC

Imprisonment

Imprisonment of either description for a term which may extend to two years.

Fine

The court may impose fine alone, or fine in addition to imprisonment.

Bailable ⓘNon-Cognizable ⓘCompoundable ⓘ🏛️ Any Magistrate ⓘ

Dishonestly or fraudulently preventing a debt or demand from being made available for creditors carries imprisonment of either description up to two years, or fine, or both.

Example of Section 422 IPC

In 2016 in Nagpur, Kishore was declared insolvent while owing heavy sums to fuel suppliers and lenders. At that time, a fruit merchant named Manohar owed Kishore eight lakh rupees for completed lorry transport services. To keep that claim out of the insolvency estate, Kishore fraudulently altered his ledgers and signed a backdated waiver cancelling Manohar's obligation. By doing so, Kishore dishonestly prevented a debt due to himself from being made available according to law for payment of his debts. Kishore is punishable under Section 422 IPC.

When Section 422 IPC Does Not Apply

  • The alleged claim was not a valid debt or demand owed to the accused or to the other person.
  • A creditor and a debtor reduced or settled a disputed account honestly in the ordinary course of business.
  • The person acted in good faith without any dishonest or fraudulent design to defeat creditors.
  • A third-party debtor failed to pay on time without any interference, collusion, or preventive act by the accused.

Section 422 IPC in the BNS

Section 422 IPC is now covered under Section 321 BNS.

Section 422 IPC corresponds to Section 321 BNS. Section 321 BNS reproduces the text and penalties of Section 422 IPC without substantive change, retaining imprisonment of either description for a term extending up to two years, or with fine, or with both, with no mandatory minimum period of imprisonment. The provision sits in Chapter XVII of the Bharatiya Nyaya Sanhita, 2023 under the heading Of fraudulent deeds and dispositions of property.

View detailed comparison (IPC 422 vs BNS 321) →

FAQs on Section 422 IPC

What does Section 422 IPC punish?▼

Section 422 IPC punishes anyone who dishonestly or fraudulently prevents any debt or demand due to himself or another from being made available by law to pay debts.

What is the punishment prescribed under Section 422 IPC?▼

The statutory punishment is imprisonment of either description for a term which may extend to two years, or with fine, or with both.

Is Section 422 IPC bailable and cognizable?▼

Under the First Schedule to the Code of Criminal Procedure, 1973, an offence under Section 422 IPC is non-cognizable and bailable, triable by any Magistrate.

Can an offence under Section 422 IPC be compounded?▼

Under Section 320(1) CrPC, compounding can be effected by the creditors affected by the act, without needing the permission of the court.

How does Section 422 IPC differ from Section 421 IPC?▼

Section 421 IPC deals with a debtor removing or transferring tangible property without adequate consideration, whereas Section 422 IPC deals with preventing receivables, debts, or demands owed to the debtor from reaching creditors.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·