In Brief
An exporter of marine products claimed under ECGC's Single Buyer Exposure Policy after an overseas buyer defaulted. ECGC denied the claim, arguing that loading of goods commenced one day before the policy's effective date, relying on DGFT Guidelines defining 'shipment date' as the 'onboard' Bill of Lading date. The Supreme Court allowed the appeal, holding that the contract's ambiguous dispatch term must be interpreted against ECGC (the drafter), and even the DGFT Guidelines themselves support using the Bill of Lading date (completion date), not the loading commencement date. Denial on a technical one-day delay contradicted business common sense when the actual claim event (buyer default) occurred well within the policy period. The Court directed ECGC to pay the full claim amount of ₹2.45 crores with 9% interest.
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