Hello respectaed panel lawyers,
I started a business in 2012, borrowed a T/L 15 Lakh and Working capital of 7 Lakh under CGTMSE without any collateral, mortguage or personal guarantee other than SIDBI (by default). Initially, it was performimg good but since last 1 and half years, I am just saving the account from slipping to NPA by paying instalment and interest in CC a/c. Its a job work industry related to Iron and Steels market.
I am having another firm, where I have borrowed 45 Lakhs as Cash Credit limit. Since, I am in to Iron and Steels business and in last 2 years, the concerned market has witnessed a severe downfall, I am too a sufferer. Lot of debt due for collections from market but only in words. I took a T.O.D. of 7 lakhs in July for 15 days but could not pay in Time because of failure of committments of my customer whom I have supplied material.
Recently, 5 days back, this account slipped to NPA for the same, where my Father-in-Law stands guarantor (Intangible) without mortguaging any property.
Today he received a legal Notice to close the account by paying all the outstanding amount of Rs 52 Lakhs, where I have deposited an amount of Rs 1,40,000/- but it is adjusted in interest of these 3 months with penal interest.
Please suggest me, what should be my move? As, presently I am not in a position to close the account by paying all the dues but my intensions are very much clear to pay and regularise the account once the market stables its position. I am in huge financial loss but do not want to be called a defaulter. Is my father-in-laws property at risk because of this? Can bank attach his property too, though he has not given any property related documents to Bank?