MITTAL TECHNOPACK PRIVATE LTD. & ANR. Vs. ECGC LTD. (FORMERLY EXPORT CREDIT GUARANTEE CORP. OF INDIA LTD.)

JUDGEMENT

(1.) In this writ application the petitioners challenge the rejection by the respondent of the petitioner's claim under a Multi Buyer Exposure Policy for reimbursement of the cost of re-importation of goods exported by the petitioner company.

(2.) The petitioner company is an export house dealing in export and import of various commodities. The respondent is a Government of India enterprise which carries the business of providing insurance coverage to exporters in respect of risks associated with exports. At the request of the petitioner company, the respondent issued a Multi Buyer Exposure Policy bearing No. 0050008485 in favour of the petitioner with an aggregate loss limit of Rs. 5 crores. The Policy period was from 28 Dec., 2011 to 27 Dec., 201 On 27 July, 2012, the petitioner company exported a consignment of polypropylene sheets to Tanzania. Upon the said consignment reaching the port of discharge, the consignee refused to tender payment and take delivery of the goods.

(3.) By its application dated 20 Nov., 2012 the petitioner company sought approval of the respondent for reimporting the said goods and requested for coverage of the estimated cost of re-importation to the tune of Rs. 13,41,715.00. By its letter dated 29 Nov., 2012, the respondent granted approval for re-importation of the said consignment of goods subject to the condition that the respondent's liability shall be limited to a maximum of 45 per cent of the gross invoice value of the goods.