Contingent Liability Escrow

A specific escrow carve-out, distinct from the general indemnity escrow, ring-fenced against a known, quantifiable but unresolved liability at closing.

Buyer Example

Target Nagpur cotton ginning unit has a pending ₹1.8 Cr excise duty demand under appeal. Buyer holds back ₹2.2 Cr (110% of exposure) in a dedicated contingent liability escrow, released to the seller only upon a favorable appellate order or expiry of the limitation period.