Image for representational purposes only.
The story so far: Chief Justice of India Sanjiv Khanna recently came down heavily on the Uttar Pradesh government over the growing trend of ordinary civil disputes being converted into criminal cases. His remarks came during the hearing of an appeal filed by two individuals, facing a cheque bounce case, who were also slapped with criminal charges including breach of trust, intimidation, and criminal conspiracy.
What were the CJI’s remarks?
The Chief Justice observed that “every day, civil suits are being converted to criminal cases. It is absurd. Disputes over civil issues cannot be turned into offences… There is a complete breakdown of rule of law in Uttar Pradesh. Converting a civil matter into a criminal case is not acceptable.” The Indian legal system has been witnessing a troubling trend of the increasing misuse of criminal law in matters that are fundamentally civil in nature. This tendency has been seen in civil disputes, such as money recovery, cheque bounce cases, contractual disagreements, inheritance, property partitions, commercial transactions and others. Many of these types of cases are increasingly being given the colour of a criminal dispute, often to create pressure on the opposing party.
What is the modus operandi?
A common tactic seen in most of these cases are the accusations that the opposite party had dishonest intentions from the very beginning of a civil arrangement — such as a loan, contract, or agreement. For context, if Mr. A lends money to Mr. B which Mr. B fails to repay, the matter would traditionally fall under civil jurisdiction. However, if Mr. A comes up with the claim that Mr. B never intended to repay the loan and obtained the money through deceit, Mr. A can pursue criminal charges under Section 420 (cheating) of the Indian Penal Code, now covered under Section 318 of the Bharatiya Nyaya Sanhita (BNS).
Why is this happening?
Legal experts believe that many people view civil law as an ineffective remedy, largely due to the protracted nature of most civil cases. This perception is seen in several family disputes also, where prolonged litigation frequently results in the irreparable breakdown of marriages or family relationships. There is also an impression that involving someone in a criminal case can lead to a quicker settlement. In many cases, people with influence, and/or by incentivising Police officials get their FIR registered to create pressure on the other party.
As per the National Judicial Data Grid, there are currently 1,08,38,375 civil cases pending in District Courts across India. Over 68% of all civil cases pending before the trial courts are more than one year old.
Additionally, out of the 4.52 crore pending cases in District Courts, 76% — or 3.44 crore — are criminal cases.
What have the courts said?
As early as January 2000, in G. Sagar Suri versus State of UP, the Supreme Court had cautioned, “It is to be seen if a matter, which is essentially of civil nature, has been given a cloak of criminal offence. Criminal proceedings are not a short cut of other remedies available in law. Before issuing process a criminal court has to exercise a great deal of caution. For the accused it is a serious matter.”
A nuanced look at the complexities of distinguishing between civil and criminal disputes, where allegations of fraud were involved, was done by the apex court in May, 2024, in C. Subbiah @ Kadambur Jayaraj versus The Superintendent of Police. In this case, a government school teacher, who had prior involvement in real estate, filed a complaint alleging fraud in a series of land transactions, alleging the opposite party had duped him under the pretence of lucrative real estate investments. The teacher claimed he was persuaded to register several properties in the names of the opposite party, based on assurances that he would receive both land and profits in return. After a dispute arose over profit sharing, he complained that the opposite party was not only committing a breach of trust but also intimidating him. The apex court took note of the fact that the opposite party had already passed on some plots as well as part profits from the land deals to the teacher. It observed that there is no material which can show that the accused indulged in intimidation of the teacher.
“It cannot be doubted that a dispute which is purely civil in nature has been given a colour of criminal prosecution alleging fraud and criminal breach of trust by misusing the tool of criminal law,” the apex court observed.
What is the way forward?
In the Indian Oil Corpn. versus NEPC India Ltd. case of 2006, the Supreme Court made it clear that “while no one with a legitimate cause or grievance should be prevented from seeking remedies available in criminal law, a complainant who initiates or persists with a prosecution, being fully aware that the criminal proceedings are unwarranted and his remedy lies only in civil law, should himself be made accountable, at the end of such misconceived criminal proceedings, in accordance with law.”
The court also recommended a practical solution to discourage such abuse of criminal process: “One positive step that can be taken by the courts, to curb unnecessary prosecutions and harassment of innocent parties, is to exercise their power under Section 250 Cr.P.C. (compensation for accusations made without reasonable cause) more frequently, where they discern malice or frivolousness or ulterior motives on the part of the complainant.”
Published – April 20, 2025 02:13 am IST