Prepayment on self payment and closure of cash credit
Harsh Agarwal
(Querist) 16 September 2018
This query is : Resolved
We have a sanction of INR 150 lacs as Cash Credit, INR 265 lacs as Buyers Credit and INR 35 lacs as Bank guarantee with Indusind Bank. Our renewal date is on 30.09.2018 and we decided to repay our outstanding in Cash Credit account of approx 115 lacs on 10th July 2018 and intimated the bank by mail on the same day. Bank guarantee was unutilized and Buyers Credit had been closed by bank and hence unutilized also. Intimation was followed up by mails on 11th and 20th July, asking the bank formalities and steps to get back collateral papers; and also paying some amount every day by our debtors and clients. Dissappointed with bank�s no response to mails and calls, we opened new current account in Standard Chartered bank on 31st July 2018 for future transactions but made no transactions till 10th August before repaying Indusind Bank. On 2nd August we again mailed to Indusind bank that we will repay full amount by 10th August 2018 which we achieved also on 10th August; mailed again and asked for release of collateral papers. On 17th August our account was unloaded with the limit and interest was debited for the period 01.08.2018 to 16.08.2018. On 17th August we receive a mail from Indusind bank to pay 2% prepayment charges for release if collateral papers as payment before 30.09.2018 is non adherence as per santion letter. On arguing with them that renewal date on santion letter is only 45 days from the day of closure and that the date 30.09.2018 itself is a Sunday; is it never possible for us to close our account ? The next day we receive another mail of 18.75% penal interest due to opening of current account in another bank. Kindly help in this regard how to get our collateral papers and not pay such unethical and misleading charges by the bank.
We have mailed the Nodal officer and Country head of the bank on 24th August 2018 explaining the matter and asking for relief. Requesting our legal standing on the matter to prepare ourselves if no relief is given by Nodal officer and country head.
Isaac Gabriel
(Expert) 17 September 2018
Neverthless,the bank will calculate interest upto the date for which sanction was accorded as per the condition.
Dr J C Vashista
(Expert) 18 September 2018
Commercial question.
Consult and engage a local prudent lawyer which you can afford, do not rely upon FREE SERVICE meant for needy litigants.
Guest
(Expert) 18 September 2018
Is it a real life problem, I doubt it very much.
However, if a real problem, I wonder to know that when you are an affluent person, deal in transactions of crores of rupees and have credit facility also in crores of rupees from a single bank, why interested in free advice of casual nature?
Is there any specific reason that you have not consulted your own lawyer to settle the issues, if there is any with the bank? Apparently businessmen dealing in crores of transactions, have their own lawyers on retainer ship basis.
