I have a pvt. Ltd. company manufacturing steel products . My co. Was enjoying Rs 12 crores as financial limits from the bank since may 2009 .my company was under financed as the funds wanted was more than the sanctioned limits but was always assured by the bank officials regarding the same . During 2010 there was a meltdown in the iron n steel ind. as well as severe power cuts in the state added to my misery to run the unit and ultimately had to shut down the unit in December 2010. In February 2011 we had requested the bank for restructuring of our financial facilities as we had a strategic partner to join in but the bank never replied & they declared us NPA in February 2012 and we were called by the recovery dept. to settle the account.after various meetings our OTS proposal was settled at Rs 7crore on 16/08/2012 to be paid till 30 nov 2012. prior to this we recd a notice u/s 13(2) on 14/8/2012, the said notice was dated 18/7/2012 . We accepted the OTS proposal sent to us on 20/8/2012 with a request of amendment of payment period instead of 30/11/2012 to 28/2/2013 and sent them the security cheques,as we had a buyer who was ready pay us till 28/2/2012. Our repeated request between 20/8/2012 to 31/08/2012 for extension of time was turned down by the bank whereas we had paid Rs 1 crore to the bank in lieu of this OTS. On 03/09/2012 We sent a regd letter to the bank acknowledging receipt of notice u/s 13(2) on 14/8/12 ,receipt of Approved OTS on 16/8/12, payments made to the tune of Rs 1 crore in lieu of the OTS, so the said notice u/s 13(2) should be withdrawn as payment under OTS has been recd by the bank.Subsequently we kept on requesting the bank for ext. of time and also paid 0.75 crore till 9/10/12 (totaling to Rs 1.75 crore-25% of the OTS amount) but the bank did not pay any heed to our request which resulted into impatience of my buyer as he was feeling jittery as he couldn't pay within the time prescribed under the OTS of the bank i.e. 30/11/12 . the prospective buyer backed out at the end of oct 2012 as the markets were deteriorating at an alarming pace .however sensing the deterioration the bank accepted our request on 24/11/2012 .but the damage was done.I vigorously made efforts for a buyer so that my account could be settled by 28/02/2013. On 22/2/13 I requested the bank again for an ext. of the OTS period from 28/2/13 to 31/8/13 . Which was turned down and the OTS payment of Rs 1.75crore was confiscated.
However my efforts to find a buyer went on vigorously despite of failing and deteriorating markets of iron n steel ind. as well as real estate and on 6/9/13 I sent a fresh OTS proposal to the bank for Rs. 4.75crores ( 1.75 crore already paid + 3 crores fresh to be paid) the bank turned down my proposal by asking substantial hike in the OTS amount and initiated recovery proceedings u/s 13(4) of SARFAESI and got fresh valuation done . Now I do not understand as to how bank can initiate action u/ s 13(4) when my objections against notice u/s 13(2) vide my letter dated 3/9/12 has been unanswered by the bank?Am I correct in assuming that my letter dt 3/9/12 should be treated as objection u/s 13(3)? Why the bank has not issued fresh 13(2) notice before proceeding to initiate action under 13(4) in sept 2013?
