On Monday, the Supreme Court cautioned that courts cannot be used as instruments for the recovery of money, highlighting a growing trend of parties converting civil disputes into criminal proceedings. The Division Bench of Justice Surya Kant and Justice N. Kotiswar Singh observed that the threat of arrest should not be leveraged to compel payment in matters that are fundamentally civil in nature.
These remarks arose in a criminal case from Uttar Pradesh, where allegations of kidnapping were linked to a dispute over money recovery. Additional Solicitor General K.M. Nataraj, appearing for the state, noted the increasing incidence of such complaints, explaining that police often find themselves in a dilemma, “if it does not register the case where cognisable offence is alleged to be made out, the court pulls it up and if it registers, then it is alleged to be acting in bias and not following due process of law.”
The Bench emphasized that the police must carefully distinguish between civil and criminal matters before taking action. Justice Kant observed, “Courts are not recovery agents for the parties to recover outstanding amounts. This misuse of the judicial system cannot be allowed.” He further noted that such misuse poses a serious threat to the integrity and efficiency of the justice delivery system.
The Court suggested a structural solution to guide law enforcement, recommending that states appoint a nodal officer in each district, preferably a retired district judge, to advise police on whether a complaint constitutes a civil or criminal offence. The Bench asked the Additional Solicitor General to seek instructions on this proposal and update the Court within two weeks.
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