In case of an SSI manufacturing unit, is the bank obliged to upgrade accounts to standard when all overdues are cleared after sarfaesi 13(4) notice. The borrower specifically and wehemently pleaded for this?? Bank refused all the time.
Bank was more then adequately secured with high value martgage properties. Further, the entire working capital limits were guaranteed by ECGC. Bank refused to cooperate and continued oppresive recovery action under sarfaesi act and killed the unit and also sold residential property. Bank is paid 100% of its dues on NPA date. Now the bank has filed suit at DRT to recover claim amounts receievd from ECGC for paying back to ECGC and uncharged interest. Is this action on part of bank legal or illegal.
