Section 31 of drt act

Again you are not seeing the point

I never said 65Cr

of 2.65 Cr , 20% is .26x2 = .52Cr  i.e 52Lakkhs

You paid 2 Cr (even if they retain 15 Lakhs) .

Bank receives 2 Cr

They gave you chance , which you did not avail

Their view is 20% of 2.65 is 52 Lakhs

Dues towards you 2.65-2Cr = 65Lakhs

More than 20%

So it falls under 13(2)

That is why  I asked

Did you receive Restructuring Letter

Seems you did not

Pay 65 Lakhs or come to an understanding (Settlement with mutual agreement ) to a figure

Pay that much

Get your A/c released

Otherwise

the matter can go to Sup Court

You shell out say 5 lakhs to lawyers

Finally come to an understanding with Bank which  your advocate will advise

Why not do it now

and be happy

4.2.5 Upgradation of loan accounts classified as NPAs

If arrears of interest and principal are paid by the borrower in the case of loan accounts classified as NPAs, the account should no longer be treated as non­performing and may be classified as ‘standard’ accounts. With regard to upgradation of a restructured/ rescheduled account which is classified as NPA contents of paragraphs 11.2 and 14.2 in the Part B of this circular will be applicable

2.3 ‘Overdue’

Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank.

Please see above two points of RBI Prudential Norms.   As per para 2.3 defintiion of overdue is given.  Thus the entire facility does not become overdue if NPA is declared.   As per para 4.2.5 if the overdues are paid, then the account become standard.   So the 20% is the amount which is overdue, and not the entire Rs.2.65 crore is overdue.   The overdue was only Rs.15 lakhs or so and if that is paid after declaration of account as NPA, and this amount is paid the account should be declared NPA and no action can be taken under 13(2) or the ACT. 

Bank thinks entire account become overdue is wrong.

The point is

You say 15 lakhs is due (as You have paid 1.85 ) ,

Bank says 2Cr is paid

65 lakhs is overdue

or dues to be cleared

Because of this 65Lakhs due from 2.65 Cr  , the A/c has been declared NPA

And as 65 lakks is more than 20% , 13(2) is attracted

You say if you pay 15 lakhs your loan of 2.65 will be cleared

The Head Office says NO restructure

Whole 2.65 may be paid

that is the BONE OF CONTENTION

Mr. Sukhbir Singh, I can understad your predicament, being hounded by your bank. But I think, you have not been advised properly, on the concept of NPA. Non Performing Asset refers to the asset of the bank- and due to non payment of dues of the bank, say "overdue" amount, the account, i.e. the entire facility becomes NPA and not only the overdue portion. Once it is declared NPA, the entire dues, and not the overdue only, is liable to be recalled- both SARFAESIA and RDDBFIA are applicable.

So far as upgradation is concerned, the account "may" be upgraded on payment of the overdue interest and principal. It depends upon the bank to upgrade your account, provided the account is "otherwise" in order.

I agree with Mr.Swagat MOhanty. He has given the correct answer. So Mr. SUkhbir should talk to the Bank & present a proposal with all the details. The Bank would not be able to refuse. Even if it does, it will be hard to defend such unilateral decision before the DRT as and when the matter comes up before it.