Court remands matter for fresh consideration under revised scheme, grants hearing, and extends bank guarantee validity.

The court remanded the matter to the first respondent for fresh consideration, directing a review based on the revised rehabilitation scheme, grant a personal hearing, and keep the bank guarantee valid until new orders are issued.

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Issues: Challenge to order enforcing bank guarantee under EPCG scheme; Interpretation of rehabilitation scheme clauses; Validity of bank guarantee; Consideration of Central Excise and Customs duty in revival scheme; Remand for fresh consideration by first respondent.

In this judgment, the petitioner challenged an order by the first respondent requesting enforcement of a bank guarantee under the EPCG scheme due to non-compliance with export obligations. The petitioner, a sick industrial undertaking pending before the BIFR, argued that as per a modified rehabilitation scheme, they were granted twelve years to fulfill the export obligation, which would end in 2020-21. The second respondent confirmed the validity of the bank guarantee. The first respondent, however, noted that Central Excise and Customs duty were not covered in the revival scheme but acknowledged the relief under the revised rehabilitation scheme. The court remanded the matter to the first respondent for fresh consideration, directing them to review based on the revised rehabilitation scheme, grant a personal hearing, and keep the bank guarantee valid until new orders are issued. No costs were awarded, and the connected miscellaneous petition was closed.

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