Legal Question in Banking Law in India

Hi,

At the outset, i will introduce myself, I am Dhaval M.Valia , Director & Founder of Infinity freight Services Pvt Ltd, an International Freight Forwarding co. located in Mumbai, In easy terms, we are an International Transporter.

Pls find below consequences in which we got in trouble.

1. We have been consigned 1x20 FCL(Full container Import) by our partners in China SHANGHAI BA-SHI YUEXIN LOGISTICS DEVELOPMENT CO., LTD. on Inco Terms CIF. this means we have to release the Delivery order to consignee against the ORIGINAL BILL OF LADING OR TELEX as per Agreed terms between shipper & consignee, we are just acting an agents to assist shipper consignee to take delivery of the goods.

2. On 4th May 2017 shipment arrived Nhava sheva Port & the custom broker of consignee called us for Delivery order & my office manager by negligence issued Delivery Order without noticing to collect Original Bill of Lading ( Most of the cases we come across is Telex Bl where we don't require Original BL, Mere a Telex msg of Agent is fine or Telex Bl.). But yes this is our liability to collect Original HBL in which we failed due to our negligence.

3. Consignee took delivery order from us through his Custom broker M/s.Kaswaraj & cleared the container & delivered back on 8th May 2017, I got to know from my manager on 18th May 2017 when our agent sent us the notice to hold our all other shpts of other customers due to negligence in release of this shpt. We spoke to Consignee Mr. Bali of Sai Sha Enterprise(Consignee) & understand he have made a payment of USD 10,618.60 (Swift copy attached) against shipper's Invoice & packing list, now it was little suspicious for us since the wt. of the cargo on BL was 10,411 kgs , it means mere USD 1 for 1 kg for Audio Video cables, i don't know whether it's possible but i thought may be he might have got some good deal, Though i was afraid.

4. Than next day 19th may we got an email from our partners ( as attached) that consignee owes USD 18844 for this shpt to shipper, that means they have undervalued this shpt by 1/3rd & paid the duty mere on USD 10,618.60, when we spoke to consignee, he certainly denied & said that they have purchased this cargo at USD 10,618.60.Original Chinese Invoice attached, I have attached all whats app communication between shipper & consignee, which i took from shipper during his stay at Delhi for a week..

5.Shipper of China arrived in Delhi Monday early morning dt.22.05.17 & stayed at Hotel The Royal Plaza,Cannaught Place, (Room no.408) & he went back on 28.05.17. I also arrived delhi on Monday dt,22.05.17 to speak to consignee & get this matter resolved, Consignee met almost everyday to shipper but did not agree to pay him instead started showing him his faults of Delay , etc etc... because he doesn't want to pay. I have personally spoken to consignee many times during this period requesting him to settle the payment with shipper but he is adamant & not understanding the implications of this issue. If Consignee doesn't pay, it's going to be our liability & we make huge loss due to our mere negligence.

Since Consignee have got the delivery of this cargo, thanks to our negligence , he is delaying the balance payment to shipper.

Shipper have also offered to sell this cargo to other Customers in India but this consignee is asking for his advance payment + Duty + expenses in return which we have also agreed since it will cost approx 4 lakhs. which is quite less than USD 18,844. That also we agreed but he changes his statement every day.

Consignee have stopped receiving my calls & he is ignoring us, can we do some thing legally to get the money ????

2nd question us IF my partners put the claim of this loss on me i.e USD 18,844 than under what section I can pay to them, as we being the freight forwarder, we only remit freight.

Pls advise your suggestion...

regards/Dhaval.


Asked on 6/07/17, 4:39 am

1 Answer from Attorneys

Dear Mr. Dhaval, Though the required details like contract details among parties etc. are missing but relying on your averments the legal position is that inspite of the fact that there is some negligence on part of your employee in not collecting original bill etc. but this negligence does not give liberty to consignee not to make averments of the shipment so your company is within right to claim the money and other expenses with interest in terms of the contract. Further, you are personally not liable to pay any dues. You may initiate necessary proceedings against consignee to recover the amount and and other damages with interest.

This opinion is tentative. Exact opinion can be rendered only after examining the required papers/ documents/ agreements etc.

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Answered on 6/07/17, 6:11 am


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