We are SME company and were availing a CC limit of Rs 3 Crores from Axis Bank. There was prepayment clause of 2% in case of takeover of limit during the tenure of the facility. The tenure was of 1 year which ended in July 2018. We got a better deal from another bank and we shifted the facility to them in sep 2018. We did not accept any sanction for renewal of limit by Axis Bank. The bank delayed the transfer of documents by giving one reason or the other. Then finally when we argued very hardly, we were told that we have to pay 2% foreclosure penalty. When we argued that the limit was expired and we had not accepted to roll it over, the bank told us that it was deemed to be rolled over by them as we had not closed the facility and were still using it. The amount was debited from our account.
Is Axis Bank's stand legal? if No, what is the recourse open to us?