Category: Law Services

Tags: 24/7 import agreement review lawyer India contract breach prevention strategies, Agreement Drafting with Chinese Supplier for Imports from China Near Me

With a long experience of 15 years as a practising advocate, especially dealing in cross-border disputes, a perturbing issue I have observed is about advance payment being made to Chinese manufacturers and receiving defective goods in return. In many cases, the Indian dealers receive nothing in return for the advance payment made to the Chinese Manufacturers. Last month, a textile importer from Ahmedabad approached me after losing Rs. 1.7 crore in advance payments. “We vetted samples, signed contracts, and transferred funds, then they simply stopped responding,” he explained. This is a very common plight of Indian businesses dealing with Chinese Manufacturers; however, are there certain proven legal strategies to effectively deal with this issue and recover the advance payment money? Step 1: Establishing Jurisdiction in Indian Courts It has been time and again laid down by the courts that if the payment had originated in India or the contract was performed in India, Indian courts will have the jurisdiction to adjudicate the cross-border disputes. In one of the landmark cases, Rajesh Exports vs. Guangdong Metals Ltd. (Delhi High Court, 2024) FAO(OS) 142/2024, Hon’ble Justice Pratibha Singh laid down that when the payment originates from an Indian bank and in exchange the goods are delivered to Indian ports, Indian Courts shall have full jurisdiction under section 20(c) of the Civil Procedure Code. Therefore, it is crucial to include a clause in the contract that specifically designates Indian courts as the forum for dispute resolution. If this clause is absent, the burden of proof lies upon the Indian Companies to establish that the cause of action has arisen in India.