Section 206 IPC: Fraudulent Removal or Concealment of Property to Prevent Seizure
Section 206 of the Indian Penal Code, 1860 punished fraudulent dealings with property intended to prevent the property or an interest in it from being taken as forfeiture, in satisfaction of a fine, or in execution of a decree or order of a civil court.
Section 206 IPC - meaning and scope
The section applied where a person fraudulently removed, concealed, transferred or delivered to another person any property, or any interest in property, intending thereby to prevent it from being taken as forfeiture or in satisfaction of a fine under a sentence already pronounced or known to be likely to be pronounced by a Court of Justice or other competent authority.
It also covered the same fraudulent conduct intended to prevent property from being taken in execution of a decree or order already made, or known to be likely to be made, by a Court of Justice in a civil suit.
Essential ingredients of Section 206 IPC
- There must be property or an interest in property.
- The accused must fraudulently remove, conceal, transfer or deliver that property or interest.
- The conduct must be accompanied by an intention to prevent lawful taking or seizure of the property.
- The intended prevention must relate to forfeiture, satisfaction of a fine, or execution of a decree or order covered by the section.
- The relevant sentence, decree or order may already have been made or pronounced, or may be one which the accused knows is likely to be made or pronounced.
Meaning of fraudulent conduct
Section 206 expressly required the relevant act to be done fraudulently. Under the IPC framework, the expression "fraudulently" was linked to doing a thing with intent to defraud. Accordingly, an ordinary bona fide transfer of property was not, merely because a later seizure became possible, enough to satisfy the language of Section 206. The character of the transaction and the required intention were material.
Four forms of dealing with property
| Conduct | Meaning in the context of Section 206 |
|---|---|
| Removal | Moving property so as to prevent the contemplated lawful taking or execution. |
| Concealment | Hiding property or an interest in it from the process contemplated by the section. |
| Transfer | Purporting to pass property or an interest to another in furtherance of the prohibited fraudulent purpose. |
| Delivery | Handing or delivering property to another person with the required fraudulent intention. |
Forfeiture or satisfaction of a fine
The first branch of Section 206 concerned property intended to be protected from being taken as a forfeiture or in satisfaction of a fine under a sentence pronounced by a Court of Justice or other competent authority. Importantly, the wording also extended to a sentence which had not yet been pronounced where the accused knew that such a sentence was likely to be pronounced.
Execution of a civil decree or order
The second branch addressed fraudulent dealings intended to prevent property from being taken in execution of a decree or order of a Court of Justice in a civil suit. As with the first branch, the provision included a decree or order already made as well as one which the accused knew was likely to be made.
Punishment under Section 206 IPC
| Provision | Punishment |
|---|---|
| Section 206 IPC | Imprisonment of either description for a term which may extend to two years, or fine, or both. |
Section 206 and Section 207 IPC
Section 206 focused on fraudulent removal, concealment, transfer or delivery of property or an interest in it. The neighbouring Section 207 IPC addressed a fraudulent acceptance, receipt or claim to property or an interest in it, or deception concerning a right to property, for the purpose described in that provision. The precise facts therefore determined which provision could be attracted.
Practical summary
Section 206 IPC protected judicial and competent-authority processes against fraudulent attempts to place property beyond lawful forfeiture, recovery of a fine or civil execution. Its application depended not simply on a transfer or movement of property, but on the fraudulent character of the conduct and the specific intention described by the section.