Page 264 - A Banker Down the Rabbit Hole

I asked my boss, "How you got interested in such issues of bank recovery."
He gave me a file to read and asked my opinion about possibility of
recovery of amount for goods worth USD 80,000 sold to a buyer in
Johannesburg in South Africa.

I waded through the file and understood that they had sent goods to the
buyer in South Africa based on a bill of exchange payable after 90 days
from date of acceptance of the bill of exchange (called Hundi in erstwhile
business era in India). The buyer had accepted their liability on the bill of
exchange through their bank, got the Airway Bill released and thereby the
goods from the airline. They did not pay on due date. It's the same
worldwide. The case of a South African buyer at Singapore was no different.
I also found the bill of exchange was duly protested and noted by the local
advocate there as per due legal procedure to hold the buyer liable and sue
them based on the Bill of Exchange (Hundi) accepted by them.

I asked my boss, "Why had you not taken legal action so far? It is a fit
case for filing a suit for recovery in court of law." He told me, "We were
apprehensive of winning the case in foreign land and did not want to
throw more good money after the bad money." I insisted on knowing all
the personal and business details of the buyer. It was revealed that he
was a well-known practicing advocate in Johannesburg and also engaged
in side business of selling garments and fashion fabrics in the name of
his wife and children.

I opined, "If you would not visit the buyer's place in future, I see a bright
prospect for recovery as he was enjoying a good reputation in his main
legal profession locally. He would never put his personal and professional
reputation at stake if you filed a case in local court there. He would pay
up for fear of losing face in the society as well." The boss understood
what I wanted to convey, meaning that the buyer might develop a grudge
and try to harm him if he visited his place. He clarified that he had no
intention to go there at all in future. I assured them there were very good
chances of recovery.

A Banker down the Rabbit Hole | 261