Earnest Money Deposit Requirement: A Savior Of CIRP

One of the crucial pre-requisites set out in the RFRP for the resolution applicant(s) is the earnest money deposit (“EMD”). An EMD is akin to a bank guarantee that the contract will be fulfilled. This article endeavors to touch upon the rational for such a pre-requisite including the views taken by the Courts and the Adjudicating Authority in this regard.