Rules for blocked accounts when company is in administration

G0dDuD3

Hi, I have a very technical question about bank policy and legislation:

First I'd like to explain the situation very briefly:

I have a company that is trading and constructing packing machinery. The company is running for like >30yrs. Recently I've sold a new machine to one of my customers because he had a lot of problems with his old machine (which was used for doing the same thing)

Because the customer was having problems with his old machine and my supplier never got my customer's old machine really working (despite still in warranty), my supplier felt partly responsible and we (my company + my supplier) agreed I would owe them only the different amount between the newer machine and the older one. Since me and my supplier traded for a long time, I had full confidence in this agreement.

Now, finally we received the invoice of the newer machine, which was +/- $20.000. After a series of unfortunate events, my personnel payed the full amount, not knowing 100% sure what the agreements between me and my supplier were (and which is my mistake/responsibility I have to say honestly). Luckily I knew from trading in the past that they would not make a big deal out of it when it came to pay me back the money once the old machine was deliverd back.

Now, that was before we found out that, 7 days before we made the money transfer, the company went into administration... Turned out we payed on the wrong account (because companies in administration get a new account apparently and the invoice still showed the old account) and the comptability department in my suppliers company told me we would probably get the money back from the bank so we could transfer it later to the right account.

I knew immediately it would be very difficult to get my money back, and so it is/was. After I've applied my bank to refund the money, they've let me known that they need the customers agreement on refunding the money. It turned out that my customer's bank transferred the money internally from the blocked account to the new bank account, managed by the company's administrator.

Now my question is: Are banks allowed to transfer money from a blocked account to a new bank account or - following the rules - should my company's money be refunded on its bank account after which i had to transfer the money to the right account? Or is there anything I can do to get my money (partially) back, what is the bank's liability in this case?

Thanks anyway for reading this long stretched question, feel free to give your comments (yeah I'm a thoughtless dumbass that lesson I've learned from now on) and I hope some expert knows what I mean and can give me an adequate answer.

Regards

jonesMUFCforever

Have you spoken to the administrators?
If an account is blocked then it is blocked and your payment should not have gone into it.

G0dDuD3

Thanks for your answer, the strange thing is that the administrator told us it would be refunded after which we had to transfer the money to the right account number. So even the administrator was kinda 'surprised' the bank transferred the money internally from the blocked account to another.

I think I need a banking law expert.. :think: