LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

ARVIND GUPTA (Company Secretary & Finance Manager)     02 March 2010

recovering the amount from the US party

Dear Members,
An Indian company had manufactured goods in India based on Purchase Order from a US party and thereby exported goods. Indian company did not receive any payment for the same. US party denied payment on frivolous ground of low standard quality. There was no formal agreement drawn.
What is the way out for recovering the amount from the US party?
What are the binding laws on both the Indian & US parties?
Thanks & Regards,


 5 Replies

A V Vishal (Advocate)     02 March 2010

Without any formal agreement it is difficult to recover the money, unless, it is proved that the so called sub standard goods are not returned but utilized by the US company.

Gagan Gupta (Advocate)     02 March 2010

You  file suit for recovery if there is no arbitration clause, serve summon and prove your claim and get decree, afterwards

file execution, that may be bit technical, I will guide you about that aftrewards.  

Suresh CSLLM (Service)     02 March 2010

Based on purchase order, you can file a civil suit for recorvery of amount in Indian Court. Generally summon be issued to foreign pary though embassy.


Mrs. Hetal Sunil Shah (Advocate)     03 March 2010

there breach of many sections under import and export schedules and law - unless you have Inward Remittance Certificate or Letter of Credit you cannot expoert materials, even if you have exported is surprising.

P.K.Haridasan (Advocate)     07 March 2010

Records are not properly done. Especially when a trade between different countries, proper records are necessary. It will be difficult task to recover your money even after getting a decree but  may be possible with the help of experts. 

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register