- (1.) BY means of the present writ petition under Article 226 of the constitution of India, the petitioners are seeking the following reliefs. " (a) To issue a writ, order or direction in the nature of certiorari quashing the impugned letters dated 22-9-2004 and 8-8-2001, the true copies of which are contained as Annexure Nos. 29 and 5 respectively to the writ petition. (b) To issue a writ, order or direction in the nature of mandamus commanding the opposite parties to allow the claim of the petitioners in view of the claim form submitted by them, the true copy of which is contained as Annexure No. 25 to the writ petition as per the valid policy, the true copy of which is contained as Annexure No. 1 to the writ petition. (c) To allow the writ petition with cost of this writ petition in favour of the petitioners. (d) To issue any other writ, order or direction in the nature and manner which this hon'ble Court may deem fit and proper in the circumstances of the case. "
(2.) THE facts giving rise to the present petition are that the petitioner No. 1 is the proprietorship concern of petitioner No. 1 (hereinafter referred to as "the petitioner") and is engaged in the business of Wooden Artistic handicraft. To ensure the payment and to indemnify any loss, the petitioner has taken a comprehensive risk policy (SC) from Export Credit Guarantee Corporation of India limited (hereinafter referred to as the "company"), a Government of India Enterprises having its registered office at Express Tower 10th Floor, Nariman Point, Mumbai and branch office at Panipat, State of Haryana. A policy certificate bearing policy No. SCR 0100149 dated 7-6-2001 has been issued by the Panipat Branch of the Company. In the petition, it is stated that the memorandum of association of the company provides that it is wholly Government owned company and it discharges the functions of the government and acts as an agent of the government which gives guarantees and takes responsibilities to discharge such functions in the national interest. It includes the grant of credits and guarantees in foreign country for the purpose of facilitating the import of raw materials and some finished goods for manufactured or processed goods for export. The above policy was issued to the petitioner for Rs. 50 lacs after completion of all formalities. It was valid up to 30-6-2003. After the issuance of the shipment policy, the petitioner moved an applications for issuance of credit limit for credit of Rs. 30 lacs against the buyer, M/s Gift and Arts Imports Unit No. 8 Walt Hamstow business Centre, Clifford Road, London, U. K. on 6-6-2001. On 14-6-2001, the office issued credit limit certificate of Rs. 30 lacs against the aforesaid shipment policy bearing No. ST/493-1-329710/001000470/ 01011647/2001. In the certificate, the terms of the payment was mentioned as D. P. means "delivery on Payment". After the issuance of shipment policy, the petitioner deposited a sum of Rs. 10,000. 00 as advance premium on 6-6-200l while making their application for credit limit of Rs. 30 Lacs.
(3.) ON 10-8-2001, the petitioner dispatched first consignment from Saharanpur amounting to Rs. 10,3,299/- 15480 GBP (Great Britain Round ). After the dispatch of the aforesaid consignment on 10-8-2001, the petitioner received a letter from the Company on 18-8-2001 bearing the date as 8-8-2001 stating therein that due to some adverse information received by the Company, which warrants further investigation, until further orders, the credit limit approved on buyer stands cancelled. After the receipt of the aforesaid letter dated 8-8-2001 which was received by the petitioner on 18-8-2001. the petitioner wrote a letter dated 20-8-2001 immediately informing that the petitioner has already sent first consignment on 10-8-2001 before the receipt of your letter. Thereafter, the petitioner received a letter dated 22/8/2001 from the Company Branch Office informing that the matter is being taken in the Head Office at Mumbai and the petitioner has been requested to inform the due date of the next shipment the due date of bill and any further orders pending for export etc. As per item slip No. 8 of the policy, the petitioner submitted the declaration of shipment in Form No. 203. The premium amount for the first shipment was Rs. 3. 099. 87 which has been adjusted with the advance premium amount paid at Rs. 10,000. 00 on 6-6-2001 and the balance premium remained at Rs. 6,900. 00.;