• Payment and shipment issue with a company outside India

Let me be precise all the way i can.

We are a firm trading in Petroleum Products since last 15 years in Pune, Nagpur and Mumbai. In Sep 2017 we paid an advance payment of sum 10000 USD to a firm in Singapore against a invoice performa. Payment terms were, 30% Advance & balance after the doctument (proof of shipment). The goods were never shipped nor the company seems to be intereseted to pay the money back. 

Kindly advice me. Feeling helpless as its an international dispute. On top of it, i would have to give the bill of entry to RBI by August 2018 else they will put my IEC (license) in blacklist.
Asked 5 years ago in Business Law

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13 Answers

1) you can appoint arbitrators to solve your problem fast or you can file case in ICJ for further dispute.

Ganesh Kadam
Advocate, Pune
12420 Answers
193 Consultations

4.9 on 5.0

You can send a legal notice to the company to either supply the product or return the money they have taken as advance towards supply of the product.

A copy of this notice may be endorsed to the RBI's concerned department with a letter accompanying this copy expressing your inability to comply with the norms in this regard due to the supplier's fraud.

You may request the RBI to temporarily suspend the licence due to this and allow you time to resolve this crisis and get your licence reinstated.

You may consult a local advocate and arrange to send a legal notice to the company at Singapore and to other authorities at Singapore as a follow up.

T Kalaiselvan
Advocate, Vellore
79211 Answers
1615 Consultations

5.0 on 5.0

1) Have your company sent a notice to return advance money or cancel the deal or compelte the deal wigh the time frame.

2) what was agreement date whether it is registered as per international norms. What clauses were there in the agreement like delivery of goods, date of delivery, equality etc

Ganesh Kadam
Advocate, Pune
12420 Answers
193 Consultations

4.9 on 5.0

1. Check whether any arbitration clause in the agreement is there or not. If yes then what has been the place of arbitration determined by the agreement would be guiding factor in place of suing.

2. Even if no arbitration clause is there then also you can file a suit for recovery of money from your place.

3. Once the decree is passed by court it can be sent to Singapore for its execution.

So act accordingly.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
408 Consultations

5.0 on 5.0

1. If decree is passed ex parte then time should not cross six months.

2. If its contested decree then there is no time limit. It could be anywhere between 2-5 years.

3. Then file civil ssuit for recovery of money.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
408 Consultations

5.0 on 5.0

File summary suit under order XXXVII of code of civil procedure against the foreign company

Ajay Sethi
Advocate, Mumbai
89045 Answers
6352 Consultations

5.0 on 5.0

If foreign company does not contest you would get exparte decree within one year

2) if it contests it would take 10 years to obtain a decree

3) decree passed by Indian court can be enforced abroad

Ajay Sethi
Advocate, Mumbai
89045 Answers
6352 Consultations

5.0 on 5.0

1. No doubt you can file a recovery suit but how far it will be effective to recover the money from a foreign country is to be seen. There are lot of formalities involved in executing the decree in a foreign country.

2. It depends on how and through which authority is this being taken up from India.

3. If there is no arbitration then you may have to engage the services of an advocate in that country for sending legal notice and further recovery steps which shall be more effective than to sit her in India and take steps here.

T Kalaiselvan
Advocate, Vellore
79211 Answers
1615 Consultations

5.0 on 5.0

1.Did you execute any agreement for sale with the said party? Ordinarily, the parties from Singapore do not resort to dishonest acts since punishment is stringent their if unfair act is proved.

2. If agreement for sale was executed by and between both the parties, what was the clause for dispute resolution in this over seas dealing?

3. Was there any clause for arbitration in the Agreement? Which Court has the jurisdiction to try the matter in case of any dispute since this important clause is mentioned in all agreement for sale, be it domestic or international.

4. You shall have to act according to the terms mentioned in the said agreement and prefer your application before the Arbitrator or Court as mentioned in the said agreement.

5. You can also lodge a police complaint before your local police station and send a copy thereof along with a covering letter detailing the act of cheating committed on you by the said Singaporean Firm.

6. You can also send the complaint to the appropriate police station of Singapore where the said firm is located.and can expect action/reply by them.

Krishna Kishore Ganguly
Advocate, Kolkata
26791 Answers
726 Consultations

5.0 on 5.0

1) Yes, both Singapore and Indian, legal law system are similar.

2) In agreements were you have mentioned subject to any jurisdiction : India or Singapore?

3) I will suggest don't go by litigation, you go by arbitration. Arbitration will be cheaper as compare to litigation.

Ganesh Kadam
Advocate, Pune
12420 Answers
193 Consultations

4.9 on 5.0

1. If Indian Court has the jurisdiction to try any dispute as per the Agreement then it will take around 1 to 2 years to get the order.

2. If it is Singapore Court then it will be over with in 3 to 4 months from the date of filing your application.

3. If there is no Arbitration or Jurisdiction clause in the Agreement, then it will be prudent on your part to lodge a police complaint and file an application before the Singaporean police and Court to get most effective and speedy result.

Krishna Kishore Ganguly
Advocate, Kolkata
26791 Answers
726 Consultations

5.0 on 5.0

You can take the case through our missions in Singapore. Secondly ,In the present case you have to file the suit in Singapore.

In case you file a civil suit in India, the execution of the decree will depend on the policy of the Govt, if there is any mutual agreements within both the Govt then only the decree shall be excuteable

Parkash Chand Bhardwaj
Advocate, Hamirpur
120 Answers

4.8 on 5.0

1. Serve a lawyer's notice to the firm for paying the arrears. If even after notice the amount is not paid then filing of a civil suit for recovery is the only remedy.

2. You must have entered into an agreement with the firm, wherein you say there is no arbitration clause. Is there a jurisdiction clause which confers exclusive jurisdiction to courts at a particular place? If the answer to this question is in affirmative then suit for recovery can be filed only in that court, else it can be filed by you in Pune.

2

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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