ORDER

J.M. Malik, (P.M) - Japna Chemicals Pvt. Ltd., the complainant, is a Manufacturer and Exporter of Mosquito repellents, mats and its related products. The complainant obtained a Marine Open Policy from the National Insurance Co. Ltd., the OP No.1. The aforesaid policy was taken for transportation of goods from 'Warehouse to Warehouse', in accordance with Clause 25 of the said Insurance policy. On 20.01.1999, the complainant entered into an Agreement for exporting Mosquito repellents, mats and its related products to Russia, with Blackfield International LLC, a Russian company, vide Annexure A-1.

2. As per the said agreement, the complainant was to supply Mosquito repellents, mats and its allied products to the Buyer. The Buyer was to provide Letter of Credit to the complainant for the above said transaction. However, the Buyer could not provide the Letter of Credit. It was mutually agreed between the parties to substitute the Letter of Credit with the Bank Guarantee. Pursuant to that Agreement, an unconditional Bank Guarantee was furnished by Baltic International Bank, Riga, Latvia, i.e. Guarantor Bank, holding effective banking licence duly confirmed by the Bank of Latvia vide