Chandak Brothers was in the business of exporting brass and iron hardware items worldwide, especially to European countries. The firm obtained a comprehensive insurance policy from the Export Credit Guarantee Corporation of India (ECGC), which was valid from October 1, 2004, to September 30, 2006.
The policy included coverage against the risk of non-payment for any export shipment, loss due to delay caused by commercial or political risk, protection against other unpredictable losses, and insolvency or liquidation of the buyer. The terms of the policy required that the shipments made during each calendar month would have to be intimated through
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