Limits Sanctioned on 31.11.05:
Packing Credit - 40L (ECGC guarantee + property value 15L) + FBD 50L ( Buyerwise ECGC guarantee by exporter + Bank's ECGC cover on sanctioned limit and bank would discount only ECGC covered buyers)
Buyer defaulted for Rs. 36L discounted bill due in Dec'06. In April'07, net outstanding Rs. 17L. Bank classified accounts as NPA in April'07. Issued Sarafaesi act 13(2) notice in July'07.
Post shipment default: Interim claim with ECGC filed by us in Dec'07 for 36L. Final ECGC claim filed by us (thru bank) for 17L in June'07. ECGC settled claim in May'08. ECGC paid 90% and we paid the bank balance 10%. Bank filed claim under its policy in Dec'07 and ECGC paid 90% in Dec'07.
Pre-shipment packing Credit: ECGC filed claim in Dec'07 for Rs. 40.29L. ECGC paid 30L(75%) in Dec'07. Bank recovered 10L from property sale under Sarfaesi act in Sept'08. Branch parked ECGC claim amount in saparate suspense account.
Bank filed OA at DRT against co and personal guarantee on 31.08.09 for recovery of 30L to pay back ECGC.
- Since ECGC claim is received for claimed amount - what is account classification status?? Is it NPA??
- Is the claim time barred under Limitation act??
- Please advise benefeciary of ECGC Packing credit claim amount as per RBI's following master circular:
2.6 ECGC Whole Turnover Post-shipment Guarantee Scheme
2.6.1 The Whole Turnover Post-shipment Guarantee Scheme of the Export Credit Guarantee Corporation of India Ltd. (ECGC) provides protection to banks against non-payment of post-shipment credit by exporters. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. The salient features of the scheme may be obtained from ECGC.
2.6.2 As the post-shipment guarantee is mainly intended to benefit the banks, the cost of premium in respect of the Whole Turnover Post-shipment Guarantee taken out by banks may be absorbed by the banks and not passed on to the exporters.