Documents sent for collection on 30 days sight basis by a bank in India to a Bank in Australia, with instructions to deliver the documents to the Importer against acceptance. The Australian Bank delivers the documents without any acceptance Letter from the Importer, also delivers the two Sola of Exchanges to the Importer. The Australian Bank is left with no documents in their record.
The B/L in this case is consigned to the Australian Bank who do not release the B/L to the Importer who is the Notify Party in the B/L.
The Shipping Company delivers the consignment to the Notify Party's agent even though the same has not been released by the Consignee Bank. The Australian Bank does not respond to any communication from the Indian Bank. The Importer is not interested in paying.
Who in this case is responsible for payment of actual amount and should there be any claim for damages.
Wrongful Delivery of documents by Bank.
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JawedHasan
- Posts: 2
- Joined: Fri Apr 05, 2019 5:25 pm
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larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Wrongful Delivery of documents by Bank.
Much crucial information is missing or assumed in this situation.
It is assumed that this case is based on documents sent for collection under URC 522 and that clear, full instructions as required by Article 4a1 were supplied to the presenting bank in Australia.
Unless we are discussing two separate collections, by definition, there cannot be two Sola of Exchanges. We will assume that there are a First & Second of Exchange. If the Australian bank was so instructed, it must only release documents against acceptance of the first or second of exchange. In the absence of any other instruction, the accepted draft should be held by the presenting bank, pending payment on the due date.
We are not told if any instructions were given under Article 24 to protest.
We do not know if all original Bs/L were included in the collection. There is an apparent contradiction in stating that " The Australian Bank is left with no documents in their record.", but this bank did not release the B/L to the Importer.
Unless all the original Bs/L were included in the collection, the Shipping Company may not be at fault if they surrendered goods to a bearer of an original B/L apparently endorsed in good faith.
Bearing in mind what has been said about this Australian bank, are they still trading ?
Laurence A. J. Bacon
It is assumed that this case is based on documents sent for collection under URC 522 and that clear, full instructions as required by Article 4a1 were supplied to the presenting bank in Australia.
Unless we are discussing two separate collections, by definition, there cannot be two Sola of Exchanges. We will assume that there are a First & Second of Exchange. If the Australian bank was so instructed, it must only release documents against acceptance of the first or second of exchange. In the absence of any other instruction, the accepted draft should be held by the presenting bank, pending payment on the due date.
We are not told if any instructions were given under Article 24 to protest.
We do not know if all original Bs/L were included in the collection. There is an apparent contradiction in stating that " The Australian Bank is left with no documents in their record.", but this bank did not release the B/L to the Importer.
Unless all the original Bs/L were included in the collection, the Shipping Company may not be at fault if they surrendered goods to a bearer of an original B/L apparently endorsed in good faith.
Bearing in mind what has been said about this Australian bank, are they still trading ?
Laurence A. J. Bacon
Wrongful Delivery of documents by Bank.
Mr. Bacon said the right thing. There are many different answers from us because a lot of crucial information is not released. As a consultant, we often meet this kind of "lack of crucial information to decide who is right and who is wrong" situations. That is why we have put detailed precedures for our enquirers to follow in the "Enquiry" section of our home page.
We would suggest our future enquirers to consider our proposed procedures before they put their queries in DC PRO to save the troubles of back and forth communications.
We are from www.tolee.com
[edited 2/2/02 7:21:58 PM]
We would suggest our future enquirers to consider our proposed procedures before they put their queries in DC PRO to save the troubles of back and forth communications.
We are from www.tolee.com
[edited 2/2/02 7:21:58 PM]
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laukinpongdave
- Posts: 4
- Joined: Fri Apr 05, 2019 5:16 pm
Wrongful Delivery of documents by Bank.
The bank in Austraila is wrongfully done their liability. first, they not need to present full set of bill of exchange to drawee for their acceptance.
as you known the actual situation of said collection, I will suggest you to request the presenting bank that return the full set of documents to you if drafts unaccepted or confirm the maturity date of bill if accepted by drawee via authenticated message. in this case, the presenting bank may advise the maturity date to you, but it is not an engagement on the bill as a presenting bank has no responsibility to pay if it is dishonour by drawee.
therefore, as you known, the presenting bank has no full set of documents and bill of exchange in their hands, they are unable to return them to you and since the collection instruction clearly indicate that documents to be released to drawee against their acceptance, they have no the accepted bills. thus, they will have responsibility for this issue.
as you known the actual situation of said collection, I will suggest you to request the presenting bank that return the full set of documents to you if drafts unaccepted or confirm the maturity date of bill if accepted by drawee via authenticated message. in this case, the presenting bank may advise the maturity date to you, but it is not an engagement on the bill as a presenting bank has no responsibility to pay if it is dishonour by drawee.
therefore, as you known, the presenting bank has no full set of documents and bill of exchange in their hands, they are unable to return them to you and since the collection instruction clearly indicate that documents to be released to drawee against their acceptance, they have no the accepted bills. thus, they will have responsibility for this issue.