The Supreme Court of India has ruled that the Indian Banks’ Association (IBA) lacks the authority to publicly declare lawyers as misconducted by including their names in caution lists shared among banks and financial institutions.

The court emphasized that such actions are 'unsustainable in law' and infringe on the exclusive disciplinary jurisdiction of the Bar Council of India.

The judgment was delivered in response to a petition by an advocate who challenged his inclusion in an IBA caution list dated February 5, 2020, following allegations by Canara Bank (formerly Syndicate Bank) that he failed to disclose property sales in a loan security report, leading to financial risks.The court clarified that while banks can terminate panel advocates' services, the IBA cannot adjudicate professional misconduct.It directed the Bar Council to review its disciplinary mechanisms and suggested establishing a National Legal Academy for legal education.The ruling underscores the importance of protecting advocates' rights and ensuring regulatory frameworks are effective.

The case highlights tensions between financial institutions' interests and legal professionals' autonomy, with the court stressing that disciplinary powers must remain within statutory bodies.