Money under litigation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 December 2014
Hi,
Need a clarification on the below subject. It would be great if somebody can help me on the issue:
In case a client has filed an arbitration case against the company. The arbitrator rules the case in the client's favour. The exchange debits the broker and keeps the money in escrow account. The order is challenged and an appeal is filed against the order. The appellate arbitrator rules it in company's favour. The money is still lying in the escrow account which exchange will keep on hold.
The query is whether the money kept in escrow account be treated as expense. Also suggest what would be the situation in case the suit would be appealed by the client in the high court and would be pending for trial with High court at the year end.
Please suggest
Need a clarification on the below subject. It would be great if somebody can help me on the issue:
In case a client has filed an arbitration case against the company. The arbitrator rules the case in the client's favour. The exchange debits the broker and keeps the money in escrow account. The order is challenged and an appeal is filed against the order. The appellate arbitrator rules it in company's favour. The money is still lying in the escrow account which exchange will keep on hold.
The query is whether the money kept in escrow account be treated as expense. Also suggest what would be the situation in case the suit would be appealed by the client in the high court and would be pending for trial with High court at the year end.
Please suggest
Amol S Joglekar
(Expert)
18 December 2014
Money is lying in ESCROW account. It is neither expenses nor income.
It is contingent upon the happening of the EVENT. (The event in this case is the DECISION of the arbitration case)
It is contingent upon the happening of the EVENT. (The event in this case is the DECISION of the arbitration case)
Rupesh Jain
(Expert)
19 December 2014
money in escrow is not the income or expenses
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