The Supreme Court observed that courts cannot act as recovery agents and
criticised the trend of turning civil disputes into criminal cases by parties
in dispute.
A
two-judge bench of Justices Surya Kant and N Kotiswar Singh observed that the
threat of arrest cannot be used to recover outstanding amounts. The judges
noted this has become a recent trend, with parties filing criminal cases to
recover money that is essentially a civil dispute.
The
observations were made by the SC on Monday, in connection with a criminal case
arising in Uttar Pradesh. The apex court noted that kidnapping charges were
alleged against an individual in a dispute over the recovery of money.
Appearing
for the Uttar Pradesh government, Additional Solicitor General KM Nataraj said
that there has been a significant rise in such complaints, adding that in such
cases, the police are stuck in the middle. If the police do not register a case
where a cognisable offence is alleged to have been committed, the court pulls
them up. Conversely, if they do register a case, it is alleged that the police
are acting in bias and not following the process of law.
He
further added that normally in these complaints, a criminal offence is alleged
in a dispute for the recovery of money.
Justice
Kant noted that the court understands the predicament of the police, adding
that if an FIR is not registered where it is alleged that a cognisable offence
has been committed, it is pulled up for not following the 2013 Lalita Kumar
judgement of the apex court.
The
bench also advised the police to apply their minds to see whether it is a civil
or a criminal case before arresting an individual. It further said that such
misuse of the criminal law is now posing a serious threat to the justice
delivery system. Justice Kant said, "Courts are not recovery agents for
the parties to recover outstanding amounts. This misuse of the judicial system
cannot be allowed."
The
apex court advised Nataraj that states may appoint a nodal officer for each
district, preferably a retired district judge, whom police can consult to
determine whether a matter is civil or criminal before proceeding under the
law.
The
bench directed Nataraj to seek instructions and update the court within two
weeks.