Cash credit loan

No legal steps can be suggested in the absence of the backgound facts of the case. You may also specify, what forceful measure was adopted by the bank to close the cash credit account?

For any violation like not maintaining adequate stocks with such margin, hypothicating stocks to some other pledge to another bank, diversification , expiry of limits, non production of stock statements etc., are some of the reasons recalling the advance, which are bonafide.

Any cash credit or overdraft account is a facility for maintaining cash flow, but not as a matter of right, but always depends at the sole discretion of the bank if the holder of account satisfies the conditions of the bank.

Agreed with both Shri G.L.N. Prasad and Shri PS Dhingra.