Our Preshipment Packing credit advances were covered under ECGC by our bank. The bank debited our account each month for ECGC monthly premium. In addition, the bank had excessive collateral security by property mortgage. In Dec'08, our bank illegally filed claim with ECGC declaring us as defaulters, inspite of no dues position. They got paid 75% of the outstatanding amount of Rs.40.29 lakhs. The ECGC policy is between the Bank and ECGC.
Now the bank wants to recover this amount by selling our mortgage property to repay to ECGC since they claim that ECGC claims are paid under recourse. We were not aware of this when the advances were sanctioned in 2005. We have told the bank that they cannot recover this claim amount from us since we have paid the monthly premium for this policy. We also told the bank that they cannot recover the balance 25% from us since we paid premium for the entire sanctioned limit of Rs. 40 Lakhs. Bank has filed recovery suit at DRT for recovery of this ECGC claim amount received and lying in suspence account in bank - whereas our Packing credit ledger balance is shown as outstanding of Rs. 30 Lakhs. Our asset code at bank is "Daubtful C" as per bank.
After the claim amounts were received, the bank still maintained our accounts as NPA and contionously refused any debt restructure/ Nursing programme which ultimately induced sickness and bankruptcy to our otherwise healthy SSI-EOU manufacturing unit. There were no dues in any other accounts.
Please advise if my stand is correct. Are there any court judgements on this issue.