New Delhi: Provisions under the SC/ST Act that prevent land belonging to Scheduled Castes and Tribes from being wrongfully taken over cannot be used to stop a bank from exercising its lawful mortgage rights, the Delhi High Court has held.
Justice Sachin Datta made this prima facie observation while staying proceedings initiated by the National Commission for Scheduled Tribes against Axis Bank, its Managing Director (MD) and Chief Executive Officer (CEO).
“Prima facie, in the context of the facts of the present case, Sections 3(1)(f) and (g) of the Atrocities Act are not attracted in as much the same cannot be invoked to preclude/ prevent the exercise of mortgage right/security interest of the petitioner,” Justice Datta said.
Based on a complaint, alleging violation of Sections 3(1)(f) and (g) of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act (SC/ST Act), the Commission had ordered Axis Bank’s MD and CEO to appear in person.
While Section 3(1)(f) penalises wrongfully occupation or cultivation of land belonging to a member of the SC/ST community, Section 3(1)(g) relates to the punishment for such wrongful dispossession.
In the present case, a credit facility of Rs 16.69 crore was sanctioned by Axis Bank to Sundev Appliances Ltd in 2013. This was secured by a mortgaged property in Maharashtra’s Vasai.
In 2017, the account was declared a non-performing asset after the borrower defaulted. The bank invoked its rights under the law, which was followed by a civil dispute over ownership of the mortgaged property.
Thereafter, one of the persons involved in the dispute, approached the National Commission for Scheduled Tribes, which summoned the bank officials.
The high court held that the proceedings pending before the Commission were without jurisdiction.
“The proceedings pending before the Commission, particularly, the summons issued therein which requires the MD & CEO of the petitioner – the bank – to appear, are without jurisdiction. No rationale has been recorded for requiring senior officials of the petitioner to appear personally before the Commission,” the judge said, and posted the matter for further hearing on February 5, 2026.
