Legal Question in Banking Law in India

I had posed a question to you on insurance cover taken by my bankers with Export Credit Guarantee Corporation of India Ltd. (ECGC).The aforesaid question was sent to you on 19th January 2011. Hearing of my matter was scheduled to be held on 25.01.2011 before the Debt Recovery Tribunal, Mumbai (India). It is regretted that so far, you have not answered to my query. Please ensue that my question is addressed on prompt basis as my matter is pending before DRT and I have to submit my explanation on the subject of claim received by bank from ECGC. Please let me know as to whether you would be able to answer my question. If not, please do not hesitate to give me negative reply. But do not keep in pending for so long.
Your early response in the matter is solicited.

Asked on 1/26/11, 11:49 pm

2 Answers from Attorneys

J. Radhakrishnan independent Practice

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you should know that the ECGC cover/insurance is for the benefit of the Bank and not for liquidating your debt to the Bank. It is a cover against default from the foreign party in clearing your Bill. Inspite of receipt of proceeds by your Bank on claim made by them with ECGC, they have to pursue the claim against you and any recovery from you have to be shared between the Bank and ECGC. In all matters concerning court proceedings against you, better go by the advice of your counsel. No further correspondence will be entertained on the subject at this end.

Answered on 1/27/11, 12:26 am

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