javsjavs (job) 15 March 2011
hello all
i have a business of exporting fabrics. now i have some clients who are not making payments.
is it possible to file suit against defaulting party abroad?
one customer in usa told me that they are going bankrupt so we cant do anything??
thanks for ur help
Nu.Delhi.Law.Fora. (Advocate-on-Record Supreme Court of India) 15 March 2011
Dear Querist,
Please consult a local corporate lawyer in India and also an attorney at USA so that you can be impleaded as party as claimant in the insolvency proceedings instituted by your foreign buyer. So that you should not be grilled by provisions of FEMA so as to say that you have not taken steps to repatriate the exports proceeds. If you dont take such steps, fall-out is three-fold: The RBI would not entertain you waiver/write off application and/or application for extension of time for such required repatriation of export dues. Then, you may have to face criminal prosecution and adjudication proceeding by ED as well. Although, under FEMA, this is compoundable, but that fairly depends on facts and circumstances.
Please feel free to contact should you have any further query.
Rabin Majumder
Advocate-on-Record
Supreme Court of India
New Delhi
Nu.Delhi.Law.Fora
Corporate Laws and Litigation Support.
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