Notice7

Mr. Z

Address….

Dear Sir

RE:     NOTICE DEMANDING JUSTICE.

We act for (1) Company 1 and (2) Mr. ___________________, Managing Director, both having office at ……………. Our clients have instructed us to serve this legal notice upon you as follows:

01.              That our clients are reputed business house in garments sector in Bangladesh. Our client is involved in 100% export oriented garments manufacturing business. Our client has been maintaining CD Account No. 26567 with your Agrabad Corporate Branch, Chittagong (hereinafter referred to as the Branch) since 1995.

02.              That in 1996 our client received several payments through Foreign Cheques as part payments against different Export Invoices. Accordingly following cheques were deposited by our client with the Branch for collection of the proceeds:

Cheque No. Date of Deposit Drawn on Amount Export Invoice No.
004406 29.03.96 MTB Bank New York, USA US$ 3,775.40 MBL/EXP/05/96
1144 05.11.96 Marine Midland Bank New York, USA US$ 67,500.00
Total
 US$ 71,275.40

03.              That the Branch collected the proceeds under the aforesaid cheques and credited an amount of Tk. 28,45,800.00 only to our client’s CD Account No. 26567 on 03.12.96 upon deduction of an amount of Tk. 6,19,737.00 only as charges against collection of the said cheques (including other charges).

04.              That after long three years from the date of crediting the account of our client by the Branch and long after closure by our client of the aforesaid export transaction, our client all on a sudden received letter dated 25.11.99 issued by the Branch alleging that recently they have come to know that American Express Bank, New York reversed the credit entry on 21.11.96 and demanded refund of the cheque amount with interest.

05.              That in reply to the Branch’s letter dated 25.11.99 our client vide its letter dated 02.12.99 categorically denied to be liable for the alleged reverse of the credit entry on the ground that more than three years has elapsed from the transaction.

06.              That after more than a year the Branch again vide its letter dated 08.12.2001 informed our client that as soon as the reversal of the credit entry came to the notice of the Branch they informed the same to our client. But the fact still remains that more than three years has elapsed and our client is no more entitled to recover the amount from the issuer of the aforesaid cheques. As such the Branch’s allegation was not tenable. Further, even if, without conceding, the allegation is true, since the Branch has not returned the cheques to our client, the Branch is not entitled to claim refund of the amount.

07.              That in such situation the Branch without assigning any reason by two Debit Vouchers both dated 21.03.2001 debited an amount of Tk. 38,22,376.00 only from the export proceeds under the letter of credit No. LCBB 59699 dated 15.09.2000 and No. LCBB 59706 dated 18.09.2000.

08.              That immediately upon receipt of the information of the said debiting, our client vide its letter dated 09.04.2001 requested the Branch to refund the said amount and credit the same to our client’s account with the Branch. Copy of the said letter was also endorsed to the Managing Director of the Bank.

09.              That it may be mentioned here that all export-import transactions of our client have been made through the Branch and accordingly the original Export Registration Certificate (ERC) and Import Registration Certificate (IRC) of our client is kept by the Branch. Since our client was no longer willing to continue the banking transaction with the Branch our client requested the Branch vide its letter dated 07.04.2001 to return the said originals of ERC and IRC to our client so as to enable our client to open L/Cs through other Banks. Since no reply to the said request was received by our client, they submitted an application along with the Master L/C No. LCBB 60574 dated 31.03.2001 for US$ 82,250.00 to the Branch for opening of Back to Back L/C for US$ 16,000.00 for import of fabrics and accessories against the said Master L/C.

10.              That in reply to our client’s letter dated 09.04.2001, the Branch vide their letter dated 11.04.2001 informed our client that the said amount was debited in connection with the reverse entry made by American Express Bank against collection of the aforesaid cheques. The Branch also informed our client that they are keeping the issue of opening of Back to Back L/C unresolved.

11.              That upon receipt of the Branch’s letter dated 11.04.2001 our client vide its letter dated 12.04.2001 informed the Branch that our client being a 100% export oriented garments manufacturing industry needs raw materials on an urgent basis in order to export the finished goods in time; otherwise 650 persons working in the establishment of our client will become unemployed. Our client once again requested the Branch either to send the ERC and IRC to National Credit and Commerce Bank Limited, Gulshan Branch, Dhaka or to return the ERC and IRC to our client so that our client can procure raw materials on an urgent basis after opening L/C through the said Bank.

12.              That in reply to our client’s letter dated 12.04.2001, the Branch vide its letter dated 12.04.2001 informed our client that the matter is referred to the International Division of Head Office and as such they are unable to return the ERC and IRC. However, the Branch with a malafide intention informed our client that they could return the Master L/C along with photocopies of the ERC and IRC knowing fully well that without original ERC and IRC the Master L/C bears no value. The Branch also requested our client to pay an amount of Tk. 29,74,000.00 only as interest in connection with the collection of the cheques in question.

13.              That it is clear from the aforesaid facts that the debiting of Tk. 38,22,376.00 only from the export proceeds under the letter of credit No. LCBB 59699 dated 15.09.2000 and No. LCBB 59706 dated 18.09.2000 is illegal and untenable being barred by law. The debiting of the said amount is not tenable since the original cheques deposited by our client were not returned to them.

14.              That it is also clear that you have no right to hold the ERC and IRC while our client is not willing to continue the banking transaction through the Branch and since the Head Office is not giving its decision regarding return of the ERC and IRC, the Branch is holding the same. Non-return of the ERC and IRC is causing substantial financial loss in the business of our client, for which our client reserves the right to initiate legal action against the Agrani Bank for recovery of compensation against loss done to the business of our client.

In the premises stated above you are requested to take necessary steps for (1) refund of Tk. 38,22,376.00 only debited from the export proceeds under the letter of credit No. LCBB 59699 dated 15.09.2000 and No. LCBB 59706 dated 18.09.2000 and (2) return of the original Export Registration Certificate and Import Registration Certificate to our client within 7 (seven) days from the date of receipt of this notice. Should you fail to comply with the request, our client will be compelled to take necessary legal action against you.

A copy of this notice is kept in our office for future reference.

Yours faithfully

………………….

For: “The Lawyers & Jurists”

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