Back
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
V.K. Jain, Presiding Member
Happy Steels Pvt. Ltd. and Anr. —Appellants
versus
Union of India and Ors. —Respondents
First Appeal No.199 of 2013
(Against the Order dated 17/08/2012 in Complaint No.07/2011 of the State Commission Punjab)
Decided on 13.10.2020
For the Appellants:Mr. Aditya Vikram, Advocate
For the Respondents:Mr. Bharat Sangal, Sr. Advocate with Mr. R.R. Kumar, and Ms. Babita Kushwaha, Advocates
IMPORTANT POINT
Export credit guarantee insurance claim rightly repudiated for non-intimation of overdue payments to credit guarantee corporation.
Headnote:
Consumer Protection Act, 1986—Section 19 : [Consumer Protection Act, 2019—Section 41]—Export—Credit Guarantee—Insurance claim—Scope—Complainant-appellant obtained an insurance policy from the respondent to cover the risk in the exports made by it—Overseas buyer having defaulted in making payment to the complainant claims for reimbursement made—Repudiation of claim—Complaint against also dismissed by State Commission—Hence this appeal—As per materials on record, there were persistent defaults on the part of the complainant not only in intimating the shipment of the consignments but also in intimating the overdue payments to the respondent—Since overdue payment were not declared to the respondent by the end of the month next to the month in which they had become overdue, thus, there was a clear breach of clause 8(a) and 8(b) of the policy—As per clause 19 of the policy the respondent-corporation is absolved of any liability since the complainant failed to declare the shipment and overdue payments—Intimation of overdue payment is even more important than the intimation of the shipment of the goods—Thus, complainant erred in not intimating the overdue payment to the corporation—Interference with impugned order declined. (Paras 5 to 12)
Result: Appeal dismissed.
ORDER (ORAL)
V.K. Jain, Presiding Member.—The complainant/appellant company is an exporter and had obtained an insurance policy from the respondent Expert Credit Guarantee Corporation of India Ltd., in order to cover the risk in the exports made by it. The complainant had been exporting goods to M/s Overseas Trading Company of USA. The overseas buyer having defaulted in making payment to the complainant, claims for reimbursement in terms of the policy were lodged by the complainant/appellant with the respondent. The claims were rejected vide letter dated 27.07.2009 which to the extent it is relevant reads as under:-
1. The shipments under claim were declared with delay and after risk has materialized i.e. after the payment became overdue. The first five shipments dated I4/11/2007, 01/03/2008, 11/03/2008, 05/04/2008 and 23/05/2008 were declared on 11/07/2008 that is when the payment of first shipment was already overdue for more than 3 months. Further the sixth shipment dated 02/07/2008 was also declared with delay of 2 months on 15/10/2008 whereas the last date of submitting the declaration of this shipment was 15/08/2008. Therefore the Corporation does not have any liability in respect of the shipments under claim as per clause 19(a) of the policy issued.
2. The Corporation was informed of the overdue of payments in respect of the shipments under claim with delay of more than 5 months. This amounts to non-compliance of the policy terms and’ conditions stipulated under clause 8(b) of the policy issued. Reporting the overdue with delay has resulted in additional liability for the Corporation as another policyholder from Chandigarh effected two shipment to this buyer on 22/05/2008 and 16/07/2008 for Rs.21,39,238/- and 31,92,679/- which has resulted in claim. If the overdue had been reported in time as per the policy terms and conditions this additional liability would not have resulted. Therefore, as per clause 19(b), the Corporation does not have any liability of the losses incurred in respect of the shipments under claim.
3. Shipments dated 23/05/2007 and 02/07/2007 were effected when the first shipment was overdue for more than 2 months. Instead of reporting the overdue to the Corporation you continued to send further shipments which enhanced the liability. This is in violation the clause? (c) of the policy.
4. You have been irregular in submitting the monthly declarations of the shipments, despite our reminders to declare the shipments by not later than 15th of the subsequent month so that such material lapse do not jeopardize your interest under the policy issued. In these reminders the Corporation warned that ECGC may not be in a position to assist you in the event of any non-payment. We sent you reminder dated 13/07/2006 advising you to declare the shipments effected for the months of January, February, April, May, July, October and November in 2005 and for the months January to June, 2006. Then again a reminder was sent on 04/10/2006 advising you to submit declarations for the month of January, February, April, May, July, October and November in 2005 and for the month of August to October 2006. Another reminder dated 15.11.2006 was sent advising you to submit the declarations for the months as mentioned in reminder dated 04/10/2006. However, no declarations were submitted by you for the above months. Four more reminders dated 02.01.2007, 06/02/2007, 01/03/2007 and 07/05/2007 were sent to you advising to submit declarations for the January, February, April, May, July, October and November in 2005 and for the months of August to October, 2006. Another reminder dated 03/06/2008 was sent to you advising you to submit the declaration for the months of September to December 2007 and January to April 2008. Despite repeated reminders you did not declare the shipments by the 15 of succeeding month including the shipme
