IPC Section 222
🔹 IPC Section 222 – Fraudulent removal or concealment of property to prevent distribution among creditors
Text of Section 222
"Whoever fraudulently removes, conceals, or transfers any property with the intention of defeating or delaying the claims of any person to whom such property is liable, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both."
🔍 Explanation
Section 222 deals with the fraudulent removal or concealment of property to defraud creditors — i.e., to prevent the property from being used to satisfy debts or claims.
🔹 Key Elements of Section 222
Property: Movable or immovable property that is liable to be used to satisfy debts or claims.
Fraudulent act: The removal, concealment, or transfer of property is done dishonestly and intentionally.
Intention: The purpose is to defeat or delay the claims of creditors or persons entitled to the property.
Result: The property is hidden or made unavailable for legal claims or distribution.
🔹 Punishment
Imprisonment for a term which may extend to two years.
Or with fine.
Or with both imprisonment and fine.
🔹 Application of Section 222
This section is often invoked in cases involving insolvency, bankruptcy, or debt recovery.
For example, if a debtor sells or hides property just before creditors can claim it, it amounts to an offense.
The law aims to protect the rights of creditors and maintain fairness in property distribution.
🔹 Important Points
The property must be liable for the claims — meaning creditors have a right over it.
The act must be fraudulent — innocent or lawful transfer does not attract this section.
The section protects the legal rights of creditors by preventing dishonest attempts to evade payment.
🔹 Example Scenario
If a businessman, owing money to creditors, secretly sells his machinery to a relative for a nominal amount to avoid seizure, this can be prosecuted under Section 222.
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