Mrs. Rajyalakshmi Rao, Member—The complainant in this case M/s. Rane Apparels of Tirupur, Tamil Nadu, is a exporter of cotton knitted hosiery garments. The opposite party Export Credit Guarantee Corporation of India Ltd. (hereinafter called ECGC is a body set up by the Government of India to help export, trade by providing guarantee for export credit against political and commercial risks.

2. The issue involved in this case is whether the Export Credit Guarantee Corporation which issued a shipment comprehensive risk policy committed a deficiency in service in refusing to reimburse the loss suffered by an exporter, due to a fraud committed by the buyer in collusion with the Bank employee. The facts are as follows:

“In 1993, the World Trade as well as the Indian Trade in South Africa which were still then banned, opened up and Government of India was keen that the exporters explore this new market.”

3. The partner of Rane Apparels Mr. N. Prakash visited South Africa in July, 1994 and was there till at least the 1st August, 1994 to explore export possibilities and it appears that he got in touch with certain parties allegedly representing a Company known as M/s. Afro Asian Commodity