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land in case of amalgamation

113 views 2 replies

mahesh

Student CA IPC / IPCC

11 Points Joined October 2012

Dear sir

I have a question
A company is taking over the partnership firm and they have entered into business purchase agreement, now the case is they have got the land from partnership firm whether they have to go to sub registrars office and get it transfer the land into company name or is the business purchase agreement will be sufficient to prove the ownership of the land

Replies (2)

CA Tanvi Sheth

Consultant

232 Points Joined March 2016

Hello,

The company is purchasing the partnership firm and so i guess the partnership firm might get disoolved. If so then the name of the partnership firm will get dissolved and so the land title should be transferred in the company's name.

If the partnership firm will still exist then you need to change the name in 7/12 document as now the possession will be in the name of the company. this will later help company in reporting aspects under companies act and also if it wants loan against land then the title should be of the company.