23 February 2015
Dear Sir, We as an ssi unit have taken fascilities of finance (TL and CC) from BOB in 2010, it was 2011 july when got a major setback in form of closure direction from Maharashtra pollution controll board(MPCB), as a mass action taken in this industrial area. Allthough within a week we proved our bonafide to MPCB , but due to technical reasons we got the restart order after 5 months resulting in huge loss to our company. Even in that situation we repaid all the over dues to our banker against their assurance of support in terms of enhancement and extension of fascilities. But after clearing all overdues and regularising the account in March 2012, got a shock in form of refusal of banker. Since then we tried our best to prove our bonafide with the banker and requested them to restructure the given fascilities but all in vein . Banker has initiated the action U/S-Surfeisi act which has been challanged by us in DRT in due course of time. But question remains unanswered that if there is no fault of borrower or, situation is beyond controll for a promoter , then whether banker can be forced to restructure the account by DRT ?
24 February 2015
Any of the set backs your company had suffered either due to Govt. policy or otherwise cannot be taken as basis for enhancement of the existing facilities or restructuring the loan. You have not placed on record as to what are the objections of the bank for considering the enhancement. It is settled law that,the DRT has no power to direct the bank to enter into fresh contract with you substituting the existing contact (of loan) irrespective of the fact whether there is any fault or not on your side. There is no alternative for you except to appraise the top officials of the bank in this regard on your proposal for enhancement cum restructuring the existing loan. If the bank does not conceed to your request you may approach the RBI in your state for necessarry relief.
24 February 2015
Continuing / enhancing / recalling / sanctioning of loan is internal credit decision of the Bank and it may not take into account the circumstances of non repayment keeping in view of the safety of its funds. A borrower with overdue account can not ask facility as a matter of right but has to satisfy the Bank and its norms.
You may try to switch over the Bank after regularizing of the present account.