Hi friends,
I am placing a querry infront of you and sought your support at the earliest.
Case : From 1975 on wards Mr. VRMR is doing the construction business on the constiution as proprietary concern. In 2005 he incorporated a pvt company with an intention to absorb his proprietory concern into Pvt ltd. On the proprietor's name existing contracts with Govt. Departments worth of 45 Crores (Al most all nearly 26 contract agreements range : 5 Crores to 20 Lakhs each one). Out of the 26 works some pojects completed to the extent of 25% and other 55% ans so on... Now the problem is, he is intend to takeover the proprietory concern by pvt ltd on 01.04.2006, but the existing contract agreements (Projects) are not fully completed (It is continuous process).
Questions :
1. If the entire assets and liablities are took over by the PVT co on 01.04.06, what
about the leagal status of the existing ongoing contracts? Is there any supplement
agreement to be conclude with departments on the name of pvt co. for the balance
work to be complete in coming one year and to get TDS forms both IT & ST on
the name of Pvt co.,?
2. It is time consuming & big problem to conclude the revised agreements with Govt
depts (26departments overall the AP state). Is there any method to by pass this
issue? As per the contract act, is the mutation process is resolve this issue?
3. In the proprietor's name equipment hire purchase loans is there and post dated
cheques have already issued up to the next 24 months. What about the
consequences after take over by the pvt company? Will the existing Post dated
cheques to be replaced by the pvt co., cheques after take over?
CAclubindia
