Payment must be made against accepted bill of exchange: Expert

It is the obligation of the original importer to remit the payment to the foreign supplier

We imported some goods from a Chinese supplier on CIF basis at 60 days’ credit. We accepted the bill of exchange drawn by the supplier sent through our bank and took the transport and insurance documents. However, the ship sank and we withheld the payment. Later, we claimed marine insurance and received the payment from the insurance company. Now, we are unable to send this money received from insurance company to the supplier as our Chartered Accountant says he cannot issue Form 15 CA-CB. What is the way out?

First, under the Negotiable Instruments Act, 1881, you cannot withhold payment