• Customer had imported chemical from our supplier in China on DA 90 days

Dear Sir/Madam,
We are Indenting Agent and had supplied some Chemicals  from china to one of the local customers on DA 90days now it has been more than a year but they have not done the payment to suppliers.I would like to help suppliers as their from china.
Is there any legal action which I can take against the customer?
Asked 1 year ago in Civil Law from Mumbai, Maharashtra
Hi,
Normally DA is made as on delivery basis, I fail to understand why you've given them 90 days time period. From your query, I guess 90 days period is over and in this situation you can initiate a "Recovery Suit" against the local customer in Court. You can definitely recover the money due to you, only thing all the original bill/challans and written communication must clearly show the due amount.
Rajni Sinha
Advocate, Mumbai
273 Answers
25 Consultations
4.8 on 5.0
1) Chinese company should issue legal notice to recover its outstanding dues .

2) if no payment is made Chinese company should file summary suit under order XXXVII of Civil Procedure Code to recover the outstanding dues .

3) contact a local lawyer


Ajay Sethi
Advocate, Mumbai
27396 Answers
1490 Consultations
5.0 on 5.0
1) for issue of legal notice they can contact lawyer in Mumbai .or in china 

2) it is better legal notice by sent from Mumbai on behalf of the chinese company to the customer based in Mumbai 

3) the details of the contract have to be mentioned that goods were supplied as per the purchase order . no complaints were received regarding quality of goods . inspite of repeated reminders no payments have been received 

4) give them 15 days time to make payment then file suit for recovery of money 
Ajay Sethi
Advocate, Mumbai
27396 Answers
1490 Consultations
5.0 on 5.0
Hi,
You need a lawyer who's aware of Customs Law. You'll have to file a suit in Mumbai City civil Court (either Fort or Dindoshi depending upon the jurisdiction).
Rajni Sinha
Advocate, Mumbai
273 Answers
25 Consultations
4.8 on 5.0
Documents Against Acceptance

D/A terms are usually after sight, for instance “at 90 days sight”, or after a specific date. D/A and D/P transactions provide a means for exporters to extend some level of credit facilities to their customers, while at the same time protecting their legal rights to payment.

The buyer can default on the payment of a trade acceptance. Unless it has been guaranteed by the clearing bank, the seller will need to institute collection procedures and/or legal action.

So send a legal notice on behalf of the Chinese company.If they are not turned up file a suit .Meet a local lawyer who practicing in Customs law. 
Ajay N S
Advocate, Ernakulam
2032 Answers
24 Consultations
5.0 on 5.0
Yes, first you can issue a legal notice on behalf of the supplier through a lawyer to the customer demanding payment for the goods supplied giving him some time to make payment.  Once he is found not responding nor complying with the demand his intention to cheat has become evidence, therefore you can lodge a police complaint against him with the Economics Offences Wing of the Police or even the Crime Branch with a copy of the complaint to the City Commissioner of Police with a request to direct the lower police officials to investigate and initiate proper legal action expeditiously against the offender.  Besides, you may  file a money recover suit also on behalf of the supplier at China by obtaining a authorisation letter from their company on our name. 
The lawyer may be from Mumbai or any place in India.
T Kalaiselvan
Advocate, Vellore
17545 Answers
166 Consultations
5.0 on 5.0
1. The suppliers have to file a lawsuit for recovery against the local customers to claim the principal amount along with liquidated damages, if any, and interest.

2. The lawsuit should be filed in Mumbai i.e where the customer is based.
Ashish Davessar
Advocate, Jaipur
19628 Answers
507 Consultations
5.0 on 5.0

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