Dasharath Sharma vs The State of Bihar and Others

Barin Ghosh, J.—Draconian laws made centuries back directing arrest and jail of a person for his failure to pay money stood wiped up the moment Article 21 was inserted in the Constitution of India. A person who seeks to defraud a creditor, a person who seeks to stealthily transfer his asseta in order to defeat the claim of his creditor and a person who makes false statements before the creditor or before the executing court as to his assets in order to defeat realisation of adjudged debt may be arrested in execution of a decree or in a certificate proceeding but if a person has merely failed to pay money due to the creditor despite there being provisions to arrest and jail, such person cannot be put behind the jail, for the same is perse illegal, inhuman and contrary to the basic philosophy of human rights. In the instant case, the petitioner has been arrested and put behind the bars for he failed to discharge his debts due to the Bank. It has not been contended in the counter affidavit, nor it has been contended before the Certificate Officer that the petitioner, despite having properties, is either trying to sell of the same stealthily or is trying to conceal the same or has made untrue statements before any authority to keep concealed his properties to defeat realisation of the debts due to the Bank. In a situation of this nature, it is not permissible to keep a person chained in a jail. The ''writ petition is accordingly allowed. The Certificate Officer is directed to forthwith release the petitioner from custody.

Let a copy of this order be faxed by the Court to the appropriate authority at the cost of the petitioner.