The issue of fixing of EMD and its reasonableness in EOI is a matter which comes within the scope of Commercial Wisdom of the CoC and Adjudicating Authority has no jurisdiction to sit in appeal – Atharv Intertrade Pvt. Ltd. Vs. Mr. Shivadutt Bannanje, RP for Dnyanyogi Shri Shivakumar Swamji Sugars Ltd. – NCLT Bengaluru Bench
This Application has been filed challenging the requirement of Rs.15 crore as EMD to be submitted along with EOI. The Applicant stated that as against the net worth criterion of Rs. 25 crore, the EMD of Rs.15 crore was exorbitant.
NCLT Bengaluru Bench referred the decision of Hon’ble NCLAT in Kanan Tiruvengadam v. M.K. Shah Exports Ltd. and Ors. (2018) ibclaw.in 147 NCLAT and held that this issue of fixing of refundable EMD and its reasonableness is a matter which comes within the scope of ‘Commercial Wisdom’ of the CoC.