[Resolved]  Standard Chartered Manhattan Credit Card — Unreasonable Outstanding courtesy financial and interest charge

One of my credit card 9SCB Manhattan) is in dispute. When I last used it in 2006, the bank applied financial charge because of late payment by 1 day. I called up customer care and informed them to revert the charges that they agree. However, the charges was never reverted and therefore I asked the bank to close my account. Instead of closing the account, they keep billing me by rolling over the financial charges. Finally, they marked the account as cancelled 6 months after that and the outstanding then was around Rs 3500 (with only financial charges for each month and rollover). Now few months back in 2012, they have marked my account as defaulter in CIBIL with writeoff of Rs 59000. What am I supposed to do in such case when there was no correspondence from the bank all these years and the only outstanding in my account all these years was the financial charges. How can I correct my CIBIL records? What is the settlement process and what is the maximum liability that I should bear?