Topic

Earnest Money Deposit

5 articlesLatest July 2026
Contract Law | Silence Amounts to Acceptance in Public Works Contracts; Municipal Body Liable for Rs. 1.88 Crore in Unpaid RA Bills & Deposits : Calcutta HC
|Calcutta High Court

Contract Law | Silence Amounts to Acceptance in Public Works Contracts; Municipal Body Liable for Rs. 1.88 Crore in Unpaid RA Bills & Deposits : Calcutta HC

Calcutta High Court rules that a municipal body's failure to dispute running account bills or supplementary work claims under a public works contract constitutes acceptance, imposing liability for Rs. 1.88 crore in unpaid dues. The court awarded 10% p.a. interest from the date of filing, reinforcing contractors' rights against delayed payments by government entities.

Section 37 IT Act | Forfeited Earnest Money Deposit for Business Tender Allowable as Revenue Expenditure : ITAT Delhi
Case Law Analysis
|Income Tax Appellate Tribunal

Section 37 IT Act | Forfeited Earnest Money Deposit for Business Tender Allowable as Revenue Expenditure : ITAT Delhi

ITAT Delhi rules that forfeiture of earnest money deposit (EMD) in a joint gas tender, incurred to secure fuel for hotel operations, qualifies as a deductible business expenditure under Section 37 of the Income Tax Act. The ruling clarifies that such losses are revenue in nature, directly linked to business operations, and not capital expenditure.

Article 226 | Telangana HC Sets Aside Arbitrary Tender Clauses Reducing Contract Value & EMD Requirements : Telangana HC
Case Law Analysis
|Telangana High Court

Article 226 | Telangana HC Sets Aside Arbitrary Tender Clauses Reducing Contract Value & EMD Requirements : Telangana HC

Telangana High Court ruled that reducing the estimated contract value from ₹10 crores to ₹5 crores and EMD from ₹25 lakhs to ₹12.5 lakhs in a tender schedule was arbitrary and unconstitutional, directing acceptance of petitioners' bids pending final disposal. The judgment reinforces judicial scrutiny over public procurement processes to prevent exclusionary practices.