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Courts cannot act as recovery agents for collection of money: SC

The Supreme Court has observed that courts cannot act as recovery agents and deprecated the trend of turning civil disputes into criminal cases by parties in dispute. Justice Kant said, "Courts are not recovery agents for the parties to recover outstanding amounts. This misuse of the judicial system cannot be allowed."

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Supreme Court. File/Pic

Supreme Court. File/Pic

The Supreme Court has observed that courts cannot act as recovery agents and deprecated the trend of turning civil disputes into criminal cases by parties in dispute.
A bench of Justices Surya Kant and N Kotiswar Singh, while observing that threat of arrest cannot be leveraged for recovery of outstanding amounts, said this is a trend of recent times, where parties lodge criminal cases to recover money, which is a purely a civil dispute.

These observations were made by the apex court on Monday in a criminal case arising in Uttar Pradesh, where the bench noted that kidnapping charges were alleged against an individual, in a dispute over recovery of money.

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