Delhi High Court Supports Bank's Mortgage Rights Over SC/ST Land Claims

The Delhi High Court ruled that the SC/ST Act cannot prevent banks from exercising lawful mortgage rights. Justice Sachin Datta stayed proceedings initiated by the National Commission for Scheduled Tribes against Axis Bank. The case involves a credit default on a loan secured by mortgaged property.

The Delhi High Court has clarified that the Scheduled Castes and Scheduled Tribes (SC/ST) Act provisions concerning land occupation and dispossession are not applicable in preventing a bank from executing its legitimate mortgage rights.

Justice Sachin Datta, in a significant ruling, stayed the proceedings initiated by the National Commission for Scheduled Tribes against Axis Bank, including its Managing Director and CEO.

The case involves a credit facility granted by Axis Bank to Sundev Appliances Ltd., which later defaulted, leading to a civil dispute over the ownership of mortgaged property. The court's decision reinforces the bank's right to assert its security interests.