New Delhi: The Delhi High Court on July 16 rejected a petition by crisis-ridden Daewoo Motors India Ltd challenging the government orders rejecting its five export licences and invoking Bank Guarantees (BGs) worth Rs 27 crore in lieu of them.

Rejecting Daewoo's petition challenging the order of the Customs Department invoking the BGs and Director General of Foreign Trade's (DGFT) directive for cancelling its five licences, a Bench comprising Justice Devinder Gupta and Justice S Mukerjee said there was no illegality in the orders.

The government departments had acted within their jurisdiction while passing such orders, the court observed.

Though sufficient time was given to Daewoo by the government to furnish the BGs if it wanted to keep the export licences alive, the court said it failed to comply with the direction issued on May 21 in this regard.

Daewoo had challenged the government orders on the ground that the period of performance of the export obligation had not yet expired and there was recommendation by the Export Promotion Credit Guarantee (EPCG) in its favour.

Government counsel Sanjay Jain had said the company failed to furnish the BGs despite being given sufficient time.

The government departments had initiated action against the company after an assessment report by their officials that its plants were not functioning. The cancelled licences were valid upto next year.

Daewoo had also sought to restrain government from making calls on the banks for payment of the amount of BGs.

PTI