ECGS Scheme - Rule of verba chartarum fortius accipiuntur contra ...

ECGS Scheme case highlights unfair denial of claim due to ambiguous term interpretation, focusing on the dispatch date issue.

April 27, 2022

Case Laws     Customs     SC

ECGS Scheme - Rule of verba chartarum fortius accipiuntur contra proferentem - Relevant date of despatch/shipment - The date of ‘onboard’ Bill of Lading is not applicable to the present facts as no letter of credit was executed, much less providing for application of such date. Therefore, ECGC could not have denied the appellant’s claim, even on a consideration the DGFT Guidelines. - To deny the appellant’s claim over an incorrect interpretation of an ambiguous term, that too with delay amounting to only one day, goes against such duties, especially given the fact that the appellant had transacted with the respondent on several previous occasions. - SC

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