ABL INTERNATIONAL LTD vs EXPORT CREDIT GUARANT.CORPN.OF INDIA&ORS

The Supreme Court addressed the contractual obligations arising from an agreement between Rassik Woodworth Limited and the Kazak Corporation for the supply of tea, emphasizing the enforceability of guarantees provided by the Government of Kazakhstan under the amended agreement. The Court held that the failure of the Kazak Corporation to pay the balance amount constituted a breach of contract, and the appellants were entitled to claim compensation under the risk policy issued by the Export Credit Guarantee Corporation of India Ltd. The Court affirmed the liability of the Kazakhstan Government to fulfill its guarantee despite its claims of lack of funds.