After NPA bank invoked its pre and post shipment whole turnpovr policies with ECGC and got paid 75% and 90% of its dues from ECGC in Dec'2007. We have paid the bank our share of balance 25% and 10% of outstanding amounts in 2008. The bank is persisiting on charging interest on claim received amounts till date and has also filed for interest after the claim amounts have been receievd in recovery suit at DRT. Towards OTS settlement it is not willing to budge on this claim. bank is still holding excessive property value as continuing security to business loan of our Personal Home loan of directors.
We have paid the monthly ECGC premium for preshipmet advances.
Towards issues of ECGC cover and claim amounts received from ECGC on principal and Interest on Packing credit and foreign Bill discounting we give below abstract of RBI IRAC guidelines:
“If the debits arising out of devolvement of letters of credit or invoked guarantees are parked in a separate account, the balance outstanding in that account also should be treated as a part of the borrower’s principal operating account for the purpose of application of prudential norms on income recognition, asset classification and provisioning.”
Please advise about how to counter the banks interest claim after the ECGC claim amounts have been received.
Is the bove referred RBI guidline an appropriate argument?? There are no other dues of the bank in any other accounts - Therefore should not our accounts be upgraded to standard when the ECGC claim was received in view of above referred guidlines. we had specifically requested upgradation of account after paying our part of diffrence of claim received amounts.
Thanks in advance