Why in the News?

In August 2025, the Supreme Court intervened twice to prevent the misuse of criminal proceedings in essentially civil disputes.

About Civil and Criminal Cases:

Civil cases involve disputes between individuals or organisations and are mostly governed by Code of Civil Procedure, 1908 (CPC). The aim is to resolve rights and duties, usually through compensation (damages) or injunctions. Examples: property disputes, contract breaches, divorce, custody, money recovery.
Criminal cases involve offences against the state or society. The objective is punishment and deterrence. Initiated by the state prosecutor. Examples: theft, cheating, assault, murder.
Burden of proof:
- Civil cases: Decided on a preponderance of probabilities (more likely than not).
- Criminal cases: Guilt must be proven beyond reasonable doubt.
Dual Cases: Some acts can give rise to both civil and criminal liability. For dual proceedings, there must be proof of criminal intent before entering the commercial or personal relationship.
Timelines: Data from the National Judicial Data Grid (2025) shows civil cases are slower (avg. 4.91 years) compared to many criminal cases (70% disposed within a year).

Rajasthan plywood dispute case (Aug 13, 2025): SC held there was no criminal breach of trust in a simple sale transaction. Denial of pre-arrest bail by the High Court was overturned.
Allahabad HC case (Aug 4, 2025): SC criticised a judge for allowing criminal proceedings in a business transaction dispute, calling it a “mockery of justice”. The judge was temporarily barred from handling criminal cases, later reinstated after CJI intervention.
- The SC clarified that civil disputes cannot be turned into criminal prosecutions unless fraud or criminal intent is clearly shown.

[UPSC 2016] With reference to the ‘Gram Nyayalaya Act’, which of the following statements is/are correct?

1. As per the Act, Gram Nyayalayas can hear only civil cases and not criminal cases.

2. The Act allows local social activists as mediators/reconciliators.

Options: (a) 1 only (b) 2 only* (c) Both 1 and 2 (d) Neither 1 nor 2