Liability as an employee
anckoora
(Querist) 25 April 2012
This query is : Resolved
Dear Sir,
My friend is working in a export company. He looks after banking work related to Exports.
Recently, he is in soup, as under :
His company exported goods to a party on COD basis ( cash on delivery basis)(mentioned on Air Way Bill & Invoice and cosignee as Foreign Party's Bank's name and notifying party's name) 9.4.2012 to Singapore. Documents was to be sent to party's bank (as export was made on COD basis) through his firm's bank. But by mistake, he instructed his bank to send the documents directly to party on 17.4.2012. Today, he came to know that party has already got the delivery of the goods. Then he inquired with the logistics firm (thro' whom goods was shipped) that how foreign party got the delivery of the goods in Singapore without foreign party's bank's endorsement on Air Way Bill (AWB)? In reply they send a mail to my friend with scan copy of AWB on which foreign buyer's bank's endorsement was there and said that they (logistic firm)released the goods on 13.4.12 only after receiving AWB duly endorsed by bank.
Now following points to be noted :
1. When documents was sent to party directly (mistake) on 17.4.2012 with AWB also, then how come party got AWB endorsed on 13-4-12 ?
2. How & why bank endorsed the AWB without collecting the payment from foreign buyer ?
Even bank was not having any documents viz., invoice, shipping bills in his possession-then ?
3. Now party has received the goods,without payment and if they do not pay to my friend's employer then how much my friend as an employee is liable to the financial loss suffered by his company ?
4. Also give your opinion / suggestions in this matter for my friend.
regards
anckoora
Guest
(Expert) 25 April 2012
It denotes total negligence on the part of your friend for which only he is liable, either to compensate himself or get the payment made to the company.
Now answers to your queries:
1. Only the bank, which endorsed the AWB can clarify how the party got the AWB endorsed. Mistake on the part of your friend cannot be attributed to the collecting bank when on specific instructions of your friend the documents were sent direct to the party instead of through the buyer's bank.
2. The documents were not sent to the bank, so the bank was not obliged to collect the payment from the buyer.
3. full liability of your friend in that case.
4. Please see comments, as in the introductory para.
anckoora
(Querist) 25 April 2012
Dear Mr. Dhingra,
But on AWB, COD was written and also buyer's bank's name was written as "Consignee" and therefore, buyer's bank should ask for payment before endorsing. If other documents are not with them , bank should have asked party when it came for endorsement on AWB.
Thus, there is pure negligence on the part of buyer's bank in endorsing the AWB.
regards
anckoora
Raj Kumar Makkad
(Expert) 25 April 2012
This question do not relate with any law or legal book or provision rather this is the dealing of a banker or a negligence of an employee. Let this question be made from the banker of the party.
Shonee Kapoor
(Expert) 26 April 2012
Banker only can make this clear.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Guest
(Expert) 26 April 2012
Mere mention of the Bank's name on AWB/COD, etc. does not make the bank liable unless the documents are sent to the bank. I have already stated that only bank can explain how that endorsed the documents, which were presented by the buyer for endorsement and not sent by the seller. Even if the company files a case against the bank that would fail, as the company did not send documents to the bank.
I have given only the fair opinion on the basis of the facts narrated by you.
