NEW DELHI: The Delhi HC has ruled that the provisions of the SC/ST Act related to wrongful occupation or dispossession of land belonging to Scheduled Castes and Scheduled Tribes cannot prevent a bank from exercising its lawful mortgage rights.
Justice Sachin Datta made the observation while staying proceedings initiated by the National Commission for Scheduled Tribes against Axis Bank, its Managing Director and CEO.
“Prima facie, Sections 3(1)(f) and (g) of the Atrocities Act are not attracted in this case and cannot preclude the exercise of mortgage rights of the petitioner,” the judge said in an order dated October 16.
The Commission had ordered Axis Bank’s MD and CEO to appear after a complaint alleging violations under Sections 3(1)(f) and (g) of the SC/ST Act. Section 3(1)(f) penalises wrongful occupation of SC/ST land. According to the petition, Axis Bank sanctioned Rs 16.69 crore to Sundev Appliances Ltd in 2013, secured by a mortgaged property in Vasai, Maharashtra.
HC stays order
The high court stayed the order saying proceedings pending before commission were without jurisdiction.
Feb 5: Next hearing
“Summons requiring bank officials to appear personally lack rationale,” the judge said, posting matter for hearing on February 5.