Criminalisation of Civil Disputes: Supreme Court’s Concern, Causes, and Solutions

20-04-2025

05:11 AM

1 min read

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Chief Justice of India Sanjiv Khanna recently criticized the Uttar Pradesh government for the increasing practice of converting routine civil disputes into criminal cases.
His remarks came during a hearing on an appeal by two individuals involved in a cheque bounce case, who were additionally charged with serious criminal offenses such as breach of trust, intimidation, and criminal conspiracy.
The Chief Justice expressed concern over the misuse of criminal law to pressurize parties in civil matters.

Chief Justice of India Sanjiv Khanna expressed strong disapproval of the growing trend of converting civil disputes into criminal cases, particularly in Uttar Pradesh.
The Chief Justice emphasized that disputes over civil issues should not be treated as crimes and warned of a breakdown of the rule of law in the state.

The Chief Justice highlighted the concerning trend where civil cases—such as cheque bounce, money recovery, contractual disagreements, inheritance issues, property partitions, and commercial transactions—are increasingly being framed as criminal cases.
This shift often aims to apply pressure on the opposing party, undermining the fairness of the legal process.

A common tactic in these cases is to accuse the opposing party of dishonest intentions from the outset of a civil arrangement, such as a loan, contract, or agreement.
For example, if Mr. A lends money to Mr. B, and Mr. B fails to repay, the matter typically falls under civil law.
However, Mr. A may claim that Mr. B never intended to repay the loan and obtained the money through deceit.
This leads to criminal charges under Section 420 (cheating) of the Indian Penal Code, now included under Section 318 of the Bharatiya Nyaya Sanhita (BNS).

Legal experts suggest that many individuals perceive civil law as an ineffective remedy due to the prolonged nature of civil litigation.
This is particularly evident in family disputes, where extended legal battles often result in the breakdown of marriages or family relationships.
There is also a belief that criminal cases can prompt quicker settlements. In some instances, people with influence or by incentivizing police officials get FIRs registered to pressure the opposing party.

As per the National Judicial Data Grid, there are currently over 1.08 crore civil cases pending in District Courts across India, with more than 68% of these cases being older than one year.
Additionally, out of the 4.52 crore total pending cases, 76% (3.44 crore) are criminal cases.

The Supreme Court has consistently cautioned against the misuse of criminal law for matters that are essentially civil in nature.
In January 2000, in the case of G. Sagar Suri vs. State of UP, the Court warned that criminal proceedings should not be used as a shortcut for civil remedies.
It emphasized that criminal courts must exercise great caution before issuing processes, as criminal charges carry serious consequences for the accused.

The Supreme Court remarked, "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."
This highlights the growing concern over the misuse of criminal law in civil matters.

In the Indian Oil Corpn. vs. NEPC India Ltd. (2006) case, the SC emphasized that while individuals with legitimate grievances should have access to criminal law remedies.
However, those who initiate or continue criminal proceedings knowing they are unwarranted should be held accountable.
The Court suggested that such complainants should face legal consequences after the criminal proceedings are found to be baseless and civil remedies should be pursued instead.

To prevent the misuse of criminal law, the Court recommended a practical solution: frequent use of Section 250 of the Criminal Procedure Code (Cr.P.C.).
- Section 395 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, deals with orders to pay compensation to victims of crimes.
This section allows courts to grant compensation to innocent parties who are subjected to unwarranted accusations.
The Court proposed that judges should exercise this power more often when they discern malice, frivolousness, or ulterior motives behind criminal complaints.
This would help deter unnecessary prosecutions and prevent harassment of innocent individuals.

Q1. What is Criminalisation of civil disputes?

Ans. It refers to using criminal law to settle civil issues like loans, contracts, or inheritance through pressure or intimidation.

Q2. What did the Chief Justice say about civil disputes?

Ans. CJI criticized converting civil issues into criminal cases, calling it a threat to rule of law, especially in Uttar Pradesh.

Q3. Why are civil disputes turned into criminal cases?

Ans. Due to delayed civil trials, people misuse criminal charges to pressure opponents into quicker settlements or compromises.

Q4. What has the Supreme Court ruled on this misuse?

Ans. The Court warned against criminal courts being used as shortcuts for civil remedies and stressed cautious process issuance.

Q5. What is the court's recommended solution?

Ans. Frequent application of BNSS Section 395 (formerly CrPC 250) to penalize false complainants and prevent legal harassment.

Source: TH | AL | B&B