SC Warns: Criminal Law Can’t Be Misused for Money Recovery
The Supreme Court of India has ruled that courts must not act as recovery agents in money disputes. A bench led by Justices Surya Kant and N. Kotiswar Singh said converting civil financial disputes into criminal cases is misuse of legal process.
The judgment came while hearing a case from Uttar Pradesh, where criminal allegations like kidnapping were used to pressure repayment in a money-related disagreement. The court stressed that such tactics undermine the justice system.
It criticized the growing trend of using FIRs and arrests to settle private loans or contractual claims. The court clarified that debt recovery should follow civil procedures, not criminal intimidation.
To avoid confusion, the court suggested that retired judges be appointed as nodal officers to guide police in classifying such cases correctly.
This ruling reinforces that criminal law is not a tool for financial coercion, ensuring fair legal boundaries.
SC Warns: Criminal Law Can’t Be Misused for Money Recovery
