SSI Exporter borrower had various loan accounts - Packing credit, Foreign bill discounting, Cash Credit, Mach Term Loan. To DRT, bank has repeatedly stated the NPA date as 07.04.07 due to 4 EMI outstanding in Mach Term Loan accounts and 3 export discounted bills were overdue. None of the account statements show that accounts were classified as NPA during April'07. Bank had not given any letter nor demanded any amounts before and after NPA classification. Bank issued Sarfaesi act 13(2) demand notice on 31.07.07.
Borrowers contention is that there were no EMI's outstanding at all as is reflected in the accounts and no export bills were overdue and also the buyer was covered under ECGC guarantee cover upon policy taken the exporter.
Now the question is, is it mandatory for bank to state in the statement of accounts that the accounts were classified as NPA on the particular date alleged by bank. If yes, under which RBI / Sarfaesi act / RDDBI act guidelines.
Can the borrower ask for dismissal of OA on this ground - no NPA classification at all?? Does he have good chances for success in Counterclaim for all losses.
Thanks in advance for prompt advise.