The Supreme Court on Tuesday expressed shock over the manner in which UP police sought to interfere in a corporate dispute involving Yes Bank and Essel Group saying it would set a “dangerous” precedent and lead to “lawlessness” if cops and criminal proceedings are sought to be initiated to settle scores in civil disputes.

The apex court stayed the criminal proceedings in the FIR lodged by Essel Group against the Yes Bank saying it cannot allow the police sitting in Gautam Buddha Nagar in Uttar Pradesh to freeze voting rights of shareholders of a company.

The bench also stayed the operation of two notices issued by Gautam Buddha Nagar police to the stock exchange and the National Securities Depository Limited (NSDL) asking it to not allow any transfer of shares of Essel group held by the bank.

“Using police to restrain public companies is short circuiting the judicial process which is dangerous. This will allow a lawless state of affairs. We can’t allow such a power to police,” Justice D.Y. Chandrachud heading a three-judge bench observed while staying the Gautam Buddha Nagar Police order restraining the bank from transferring or exercising its shareholder rights.

“Police officers have done something which even company law tribunal has not done. We cannot allow this. It is like taking police and restraining someone to exercise voting rights,” the bench said.