The following is with limited understanding on the matter. This is an interesting discussion.
RBI has issued guidelines on Committement Charge in 08-09 and 09-10 which in both circulars {mentioned in attached PDF file} is same.
RBI:
3.6 Commitment Charge
The levy of commitment charge is not mandatory and it is left to the discretion of the financing banks/ consortium/syndicate. Accordingly, banks are free to evolve their own guidelines in regard to commitment charge for ensuring credit discipline.
Banks are under obligation to follow Fair Practices Code and keep all information on all charges upfront to customer in bank, relevant policies on its website, including “commitment charges shall not be levied in case of ” e.g:
IN case of OBC:
The commitment charges shall not be levied on the following limits:
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1) Term Loan upto Rs 10.00 crore
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2) Working capital limits sanctioned to sick /weak units.
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3) Limits sanctioned for export credit (both pre-shipment and post-shipment) as well as against export incentives viz. duty drawback, cash compensatory support, etc.
Inland bill limits extended by way of bills purchased / discounted or overdraft / cash credit limit / sub-limit against bills for collection.
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4) Credit limits granted to commercial banks, financial institutions and co-operative banks including land development banks.
Banks might have exempted “Micro and Small Enterprises ( CGTMSE)”. It appears the RBI has issued some guidelines. However you may go thru these.
https://www.rbi.org.in/scriptts/FAQView.aspx?Id=84
If your case falls within the categories of exemption you may have full chance.
Or you may have to peruse with the Bank for waiver.
Committement Charge should have been duly mentioned in commitment letter issued to you along with terms associated with calculation of fee. You might have accepted this charge in writing.
“A fee charged by a lender to a borrower for an unused credit line or undisbursed loan. A commitment fee is generally specified as a fixed percentage of the undisbursed loan amount. The lender charges a commitment fee as compensation for keeping a line of credit open or to guarantee a loan at a specific date in future. The borrower pays the fee in return for the assurance that the lender will supply the loan funds at the specified future date and at the contracted interest rate, regardless of conditions in the financial and credit markets. A key distinction is that the commitment fee is charged on the undisbursed loan amount, while interest is charged on the disbursed amount of the loan.”
Bank’s statement to file a suit seems to be in line with directions of RBI.
Yu may find the attachments useful.
A publication mentions that “Committement Charges are back”. This implies for some time banks had stopped Commitment Charge. Your bank might have also done it. You may check with your bank { Loan Dept/Risk Management Dept.}.
https://www.business-standard.com/india/news/commitment-chargesback-as-sanction-disbursement-gap-rises/380291/
Kindly approach a competent and experienced banker who has been handling loans and an experienced lawyer who has been handling bank cases. You may get the tips and cues for proceeding further in your matter.
Valuable advice of learned experts/members is sought.
https://www.ucobank.com/service_charges_bank.htm
https://www.pnbindia.in/new/en/ui/content.aspx?id=263
https://www.unitedbankofindia.com/english/ratesservicecharges.aspx
https://www.obcindia.co.in/obcnew/site/inner.aspx?status=2&menu_id=54
https://www.ucobank.com/service_charges_bank.htm
