Legal provisions regarding Dishonest or fraudulent execution of deed of transfer containing false statement of consideration under section 423 of Indian Penal Code, 1860.
Dishonest or fraudulent execution of deed of transfer containing false statement of consideration:
Section 423 deals with dishonest and fictitious conveyances and trusts including dishonest benami transactions.
ADVERTISEMENTS:
Where the consideration for the sale of immovable property was with the consent of the purchaser exaggerated in a deed of sale in order to defeat the claim of the pre-emptor it was held that the purchaser was guilty of offence under Section 423.
The word ‘consideration’ does not mean the property transferred. An untrue assertion in a transfer deed that the whole of a plot of land belonged to the transfer is not a statement relating to the consideration for the transfer and is not an offence under Section 423.
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The provisions of Section 423 are directed against two specific acts of fraud, viz (i) false recital of consideration, and (ii) false name of the beneficiary. These are two of the most material particulars of a deed, and their misstatement has the effect of creating evidence of a false claim; so law considers it an offence.
ADVERTISEMENTS:
The points requiring proof are:
i) There was a deed or instrument
ii) It purported to effect a transfer or create a charge on any property;
iii) The accused signed, executed or became a party to such deed or instrument;
ADVERTISEMENTS:
iv) It contained a false statement as to the consideration for such transfer or charge or as to the beneficiary;
v) The accused did the act dishonestly or fraudulently.
In Radheshyam Dulse v. Chandra Balu Singh [ACC 1983 (20) P. 198] it has been observed that the complainants allegations regarding facts were that the accused persons entered into a conspiracy and one of the accused sold certain property to other accused person under a fictitious sale deed while the property actually belonged to the applicant.
It is significant to note that the legislature has not used the expression false statement widely as to cover all sorts of the false statements viz., assertion of title, possession etc., and has qualified the words ‘false statement’ by further using the expression relating to consideration as the natural meaning would be given while constructing Section 423 and it can safely be held that false statement should be relating to consideration which is not the position in the present case.
The offence under Section 423 is non-cognizable, but warrant should, ordinarily, issue in the first instance. It is bailable and is compoundable with the permission of the Court. It is triable by any Magistrate.