Dear Mr. Vijay,
The payment of overdue interest would not bring the account in order as the limit is CC Limit. The entire amount has to be repaid in order to stop the action under Sarfaesi.
It is the discretion of the Bank to allow u to operate the account after payment of overdue interest. Try convincing them. Keep talking/writing to the Bank.
At the same time, do not ignore the legal situation in the wake of 13(2) Notice.
Contact a competent lawyer. Entrust him with the legal side of the problem.
If u r in Maharashtra, u may contact Adv. Manish Bohade - 09371505560.
He is competent as well as reasonable.