SSI Borower had CC, Packing Credit, Mach Term Loan, Foreign Bill discounting limits sanctioned totalling 1.10 crores. Bank issued 13(2) notice on 31.07.07 wherein it mentioned NPA date as 07.04.07 and no overdue details are given. No letter was given around 07.04.07 stating account is / would be NPA for so and so outstandings / overdues.
As per statement of accounts of all credit facilities as on 07.04.07 - it does not state accounts are NPA and balances in all accounts are within sanctioned limits.
As per a/c statements of CC & Packing credit - on 2.07.07 it states a/c classified a NPA as on 07.04.07 !!!!!
As per a/c statements of 2 Mach Terms loan a/c's - on 02.07.07 or anytime thereafter it does not state a/c are NPA.
Borrower kept on paying regularly, even after 13(4), arrears of interest & principal regularly but bank adjusted towards principal outstandings and refused account upgradation to standard. Balances in all accounts were always within sanctioned limits.
On complaint lodged to Banking Ombudsman on illegal NPA classsification, refusal to upgrade the accounts, illegal Sarfaesi action, etc. the bank states NPA was on 07.04.07 due to 4 EMI outstanding in both the Mach term loan accounts - which is false statement and no EMI's were due.
These 2 Mach term loan a/c's were never classified as NPA - not on 07.04.07 nor 02.07.07.
Later in reply under RTI act in 2011, bank states NPA on 07.04.07 to outstandings in crystallsed liability of export bills. Fact is no bills were overdue on 07.04.07 and all buyers were covered under ECGC guarantee by way of exporters policy with ECGC.
Bank sold 1 mortgaged flat and filed OA against Principal Pvt Ltd company & personal guarantors for balance dues.
What are the arguments the borrower can take at DRT.
What are the chances if writ is filed at High court.
Thanks in advance.
