SC/ST Provisions Cannot Be Invoked to Obstruct Banks’ Lawful Security Interest under SARFAESI: Delhi HC

This article discusses a Delhi High Court judgment clarifying that provisions of the SC/ST (Prevention of Atrocities) Act cannot be used to obstruct a bank’s lawful recovery proceedings under the SARFAESI Act. The court ruled that invoking SC/ST protections to delay or nullify mortgage enforcement is impermissible, as the two laws operate in distinct domains — one protecting social rights and the other governing secured-asset enforcement. The article emphasises judicial consistency in ensuring creditors’ rights are not curtailed by unrelated statutory provisions. It underscores that financial institutions must adhere to due process but cannot be prevented from acting on valid security interests due to unfounded claims under other laws.