RATHORE, J. - (1.) BRIEF facts of the case are that the petitioner firm applied before the non-petitioners for sanction of Export Credit Limit and after considering an doing all the formalities the limit was sanctioned towards pre-shipment limit for Rs. 70 lacs, towards post shipment limit for Rs. 50 lacs and limit of Foreign L. C. for Rs. 30 lacs.
(2.) THE security was given to the Bank by the guarantor Shri Shyam Lal son of Late Shri Radhey Shyam Sharma and portion of house no. 1658, Ballabh Bhawan, Jat Ke Kuwe Ka Rasta was mortgaged. During the period March 2003, some Export Bills were pending with the Bank for remittance. Since these bills were not credited within time by the Foreign Bank and the amount was not realized in the account of the petitioner hence non-petitioner no. 1 declared the account of the petitioner as Non-Performing Account (NPA ). Learned counsel for the petitioner further submits that it was the duty of the Bank to claim the amount from ECGC and get realization of Foreign Bills. There was no role and liability of the petitioner nor petitioner could pursue the bills for realization. Therefore, the present petition is preferred by the petitioner seeking writ order or direction directing the respondent to pursue the claim towards the foreign bills from ECGC and adjust the payment of the same in the petitioner's account. Petitioner further prayed that the respondents be directed to regularize/upgrade the account of the petitioner. The action of the non petitioner was challenged by the petitioner on several counts: So far as the declaration of petitioner's non performing assets (NPA) is concerned, the petitioner submits that the respondent has violated the guidelines as laid down by the Reserve Bank of India and also acted in contravention with the ratio decided by Hon'ble the Supreme Court in the case of Maradia Chemicals reported in AIR 2004 SC 2371.
(3.) THE petitioner also referred the meaning of non performing assets: NPA means "an asset or account of a borrower, which has been classified by a bank or financial institution as sub standard, doubtful or loss asset, in accordance with the directions or under guidelines relating to asset classifications issued by the Reserve Bank". The petitioner also referred the recommendations of 1991 relating to the Financial System prevailing in the country and Standard Policy as laid down by the Export Credit Guarantee Corporation of India Ltd. The ECGC policy which is designed to protect exporters from losses that may arise due to a variety of commercial and political risks which are beyond their control. Backed by this insurance, an exporter can expand his business by taking on new buyers, entering new markets or by taking up new products. In the policy it was also provided that the Corporation normally pays 90% of the loss, whether it is arises due to commercial risks or political risks. The remaining 10% has to be borne by the exporter himself. ;