New Delhi, Sep 23: The Supreme Court on Monday underscored that courts cannot act as recovery agents, cautioning against the growing trend of turning civil money disputes into criminal cases.
A bench comprising Justices Surya Kant and N. Kotiswar Singh observed that the threat of arrest should not be used as leverage to recover outstanding amounts. The remarks came during a criminal case in Uttar Pradesh, where kidnapping charges were filed in connection with a financial dispute.
Additional Solicitor General KM Nataraj highlighted that police often face a dilemma: if they do not register a complaint alleging a cognisable offence, the court criticises them, but registering it risks accusations of bias. The bench noted that many such complaints involve criminal allegations filed to expedite recovery in purely civil matters.
Justice Kant stressed, “Courts are not recovery agents for parties to recover outstanding amounts. This misuse of the judicial system cannot be allowed.” The apex court advised police to carefully assess whether a matter is civil or criminal before proceeding with arrests, noting that such misuse poses a serious threat to the justice delivery system.
The court suggested that states appoint nodal officers, preferably retired district judges, to guide police in distinguishing between civil and criminal cases. The bench asked Nataraj to obtain instructions from the states and update the court within two weeks.
The Supreme Court has repeatedly flagged the misuse of criminal law in civil disputes, calling for vigilance to ensure that justice is delivered fairly without turning courts into instruments for debt recovery.