New Delhi: The Delhi High Court has clarified that the provisions of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 (SC/ST Act) cannot be invoked to restrain banks from exercising their lawful mortgage or recovery rights. The Court made the observation while staying proceedings initiated by the National Commission for Scheduled Tribes (NCST) against Axis Bank and its top executives in connection with a loan recovery dispute.
Justice Sachin Datta, presiding over the case Axis Bank Limited v. National Commission for Scheduled Tribes & Ors, held that Sections 3(1)(f) and 3(1)(g) of the Act—pertaining to wrongful occupation or dispossession of land belonging to Scheduled Caste or Scheduled Tribe members—were not applicable in such financial transactions. “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 inasmuch the same cannot be invoked to preclude or prevent the exercise of mortgage right or security interest of the petitioner,” the Court said.
The controversy began after a person alleged that Axis Bank’s actions violated the SC/ST Act following the bank’s move to enforce its mortgage rights under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. The property in question had been mortgaged as security for a ₹16.69 crore credit facility sanctioned in 2013 to Sundev Appliances Ltd. The account was later classified as a non-performing asset (NPA) in 2017 after default on repayment.
Subsequently, the NCST had summoned Axis Bank’s Managing Director and CEO to appear in person. The High Court, however, found that the Commission’s proceedings and summons lacked jurisdiction and rationale. It observed that no valid reason had been recorded for compelling the personal appearance of senior bank officials.
Staying the proceedings, the Court fixed the next hearing for February 5, 2026. Senior Advocate Satvik Varma, along with advocates Manmeet Singh, Alok Shanker, Anugrah Robin Frey, Shantanu Parmar, Ajay Raj, and Balram, represented Axis Bank in the case.
