I disagree with Mr Ramachary in the part where he belittles the sanctity and importance of the sanction letter. The sanction letter is a very important document where all the terms and conditions of the loan is mentioned. The "facility documents" like loan agreement etc, and the "security documents" like mortgage deed, hypothecation agreement etc., follows from the sanction letter, and not the other way round. The Bank/borrower cannot ignore the sanction letter when the situation suits the Bank/borrower. Therefore, I strongly believe that the Bank is wrong in releasing the property documents to the father "without the borrower's consent", as was required as per the sanction letter. However, I must add that presence of the borrower is not required to release such documents/security, unless sanction letter mandates it.
I agree with Mr Ramachary, however, with his advice that the Bank should not be proceeded against. The entire litigation process will take too muct cost & effort. The Directors should rather focus on running their business properly. I think the situation now is that there is not enough "security/collateral" for the Co.to avail suffcient cash credit loan. You cannot help it - I would suggest to approach different Banks and choose the Bank that sanctions highest loan amount on the basis of all available security.