Legal Question in Business Law in India

Re: ditching of foreign customer

We would need to peruse the contract to analyse the situation and advise you as to what is best course of action. Does the contract have a dispute resolution clause? What is the governing law ? A number of questions need to be analysed.

Re: ditching of foreign customer

Send a legal demand notice through your lawyer.

Re: ditching of foreign customer

You have entered into a contract which had the risk whereby the foreign customer first realises the goods and then he pays you.

Anyways, the option left with you is to sue the foreign customer in the foreign country. However this could be a very expensive proposition.

In the alternate there are firms based in US/ Canada who specialise in recovery (of course through legal means) however they charge their fees as percentage of the sum recovered.

In any case let me caution that since you had exported the goods in March itself you must realise the consideration within six months otherwise non-realisation would amount to contravention of FEMA and can result in penalty.

The first step therefore is to get an extension from the Authorised Bank for realising the foreign exchange.

regards

Re: ditching of foreign customer

One needs to know the full terms of your agreement which may be result of correspondence exchanged between you two. In the meanwhile seek extension of time for realisation of sale proceeds from RBI, as you need to get the funds realised within 6 months, or else there will a violation of FEMA on your part.