Lien marked by bank due to recall request of intl wire trf

Querist : Anonymous (Querist) 12 August 2019 This query is : Resolved
My company is involved in consulting foreign companies on entry to India. Recently, we charged a company from New Zealand USD 1000 for our services. The transaction was confirmed through an agreement and invoice. As per the agreement, amount paid is non-refundable under any circumstances. The New Zealand company has signed the same.�

Secondly, the services to be delivered had a lead time of 3-4 weeka as already informed to our client.�

They remitted the payment on 2nd Aug, it arrived in our account on 5th July. The amount got credited in our bank account.�

On 7th Aug, I noticed that my account balance reduced and on investigating, I found that the USD 1000 amount was marked "lien". .

1) The bank marked the amount lien without any consultation with me, did not even inform me that they are marking lien.�

2) As per the bank, they received a "recall request" from the foreign bank based on which they marked lien. As per my bank, they say that foreign bank claims that this is a fraudulant trabsacrion and wants to recall the funds.�

As I said, I have the following:�

1) Signed contract from our client (remitter of the funds)�

2)Invoice that we issued.�

3) Lead time for service delivery is 3-4 weeks, while recall came in just 2 days of funds receipr.�

Just for your info., we are banking with the same bank / branch for 5 yrs and receive international transfers very regularly and have never had any troubles.�

My main questions are:�

1) Does the bank reserve the right to mark lien without consultation / consent from me?�

2) Even if they mark lien, isn't the bank supposed to atleast inform me?�

3) Shouldn't the bank have waited for any firm proof of "fraud" transaction as claimed by the foreign bank?�

The reason for recall request seems ro be that remitter got nervous and wanted to call off the transaction.��

I had a word with the remitter on 9th Aug and they said that this must be an error or some security measure by their bank.�

They have written to me on email that they have no objection to the transaction.�

My bankers say that they'll remove the lien after the foreign bank replies and asks them to remove the same.�

What is your opinion on this situation?�

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KISHAN DUTT KALASKAR (Expert) 12 August 2019
Dear Sir,
Please contact in person any of the legal expert for thoroughly study your case in his leisure time.