Courts Can't Act as Recovery Agents: Supreme Court's Strong Stance

New Delhi (The Uttam Hindu): The Supreme Court has expressed deep displeasure and concern over the growing trend of turning civil disputes, such as money recovery, into criminal cases. During a hearing on Monday, the top court strongly remarked that courts cannot act as “recovery agents” for any party and that the threat of arrest cannot be used to recover dues.
A bench of Justices Surya Kant and N. Kotiswar Singh was hearing a criminal case from Uttar Pradesh, where a dispute over the recovery of money had been escalated into a kidnapping case. The bench observed, “It has become a recent trend for parties to file criminal cases to recover money, even though it is a purely civil dispute.”
Additional Solicitor General (ASG) K.M. Nataraj, appearing for the Uttar Pradesh government, also acknowledged the rise in such complaints. Highlighting the police's dilemma before the court, he said, "The police are caught in such cases. If they don't register an FIR despite it being a cognizable offense, the court reprimands them for not following the Lalita Kumari judgment. And if they do, they face accusations of bias."
Understanding the police's dilemma, the bench advised that before arresting anyone, the police should use their discretion to determine whether the case is truly civil or criminal.
Justice Surya Kant remarked, such misuse of the judicial system cannot be tolerated.
To address this issue, the Supreme Court offered ASG Nataraj a crucial suggestion. The court stated that a nodal officer, who could be a retired district judge, could be appointed in each district. Police would consult with the nodal officer before registering an FIR or making an arrest in such cases to determine whether the case is civil or criminal. The bench directed the central government to obtain instructions on this suggestion and inform the court within two weeks.