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?�
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.
P. Venu
(Expert) 14 August 2019
The matter requires professional consultation.
