The section requires the proof of dishonest or fraudulent intention on the part of the offender. With such intention he must either remove or conceal or deliver to any person, or transfer or cause to be transferred, any property without adequate consideration. By such act he must have intention to prevent or must have knowledge that it is likely that he will thereby prevent the distribution of that property according to law either among his creditors or among the creditors of any other person.
This part of the Code under sections 421 to 424, both inclusive, deal with fraudulent conveyances referred to in section 53, Transfer of Property Act and the Presidency Towns and Provincial Insolvency Acts. The use of the word ‘property’ shows that the section is applicable to both movable and immovable property.
The offence under this section is non-cognizable, bailable and compoundable when permitted by the court trying the case, and is triable by any magistrate.