My wife was propritress of a company. I was the CEO facilitating export orders for the company. The firm got an order from a government in africa, As per the instruction of the government we opened a liaison office in that country, a local bank in that country opened an letter of credit in favor of the indian company with liaision office as the drawee of the same. We paid premium to ECGC for Shippers credit policy and declared that it is our liaision office to facilitate the exports. ECGC said the bank's risk cant be covered but since it is open cover country we can ship.
We managed to prepare the materials from our own source of funds (by selling properties in my name and borrowing money from others) to perpare the shipment of goods.
We shipped the goods as per the terms of l/c. After our first part of shipment the bill was sent for collection and we discounted our bill from SBI and recieved 2.5 crores. We shipped our second part of shipment and submitted documents to be sent for collection. SBI recieved message stating some discrepancies. we furnished documents to rectify but SBI did not forward the same for collection till date.
In the meanwhile the government in africa paid 50 lakjs and stopped paying since the local bank in africa informed them that the bills are discrepant. We tried our best SBI to forward the documents also persuaded the government to make the payments. In one of the communications the Branch manager categorically denied recieving any communication from us.
In the mean time due to political circumstances we were unable to follow with the government there. So we approached ECGC for a claim to repay the bank. ECGC catagorically refused saying we did not obtain permission in writing. After strongly writing to ECGC, they sent the claim form to be filled.
We filled the claim form and submitted to the SBI to endorse it so we can submit to ECGC in Feb 2013 unfortunate till date the bank did not oblige to do that.
In June 2013 SBI filed an OA in DRT stating, my wife is the proprietress of the company and im also proprietor of the company and want to attach the properties in my name.
DRT has attached the properties and in the order the presiding officer has mentioned that proprietress is jointly and severally liable.
The bank still wants me to disclose all the assets in my name. I request the experts here to guide me where i can stall these proceedings and claim the money from ECGC.
Expect your early guidance