JUDGMENT

Madan B. Lokur, J. –

1. Petitioner No.1 (Devi Ispat) is engaged in the manufacture and trade of iron and steel products while petitioner no.2 is one of its Directors.

2. Devi Ispat had availed of credit facilities from the State Bank of India with an overall limit of Rs. 29.5 crores. This credit facility was enhanced from time to time to Rs. 68.5 crores and Devi Ispat sought a further enhancement to Rs. 93 crores but that was not sanctioned.

3. While the Bank was processing the request of Devi Ispat, it issued a letter to it on 10th January 2013 informing that its cash credit account is irregular inasmuch as the outstanding was about Rs.11.7 crores against the permissible limit of Rs. 5.6 crores. Devi Ispat was also informed that it was not servicing the interest of cash credit, Foreign Currency Non – Resident Bank Account etc. It was also informed that its account was heading for becoming a non – performing asset (NPA) and Devi Ispat was requested to regularize all its accounts by 14th January 2013 failing which there would be no alternative but to call up the advance.

4. Devi Ispat replied to the above letter but since the response was not satisfactory another letter was issu