Recently, we have bought NA land on which there is an industrial shed and a company (A) in running condition. We have purchased half of the entire property along with half of the factory shed, but we have not taken over the existing company; it is just a land and factory shed sale.
Next to this factory, there is a sister concern (B) of the existing running company. These two factories share the same survey numbers. Recently, we have discovered that the sister concern company has a substantial amount of PF, ESI, and other government statutory dues. If these are not paid by the company or recovered by them, the same liabilities could be passed on to us as we have bought a portion of the land from company (A).
We are unsure about the best course of action and how to proceed in this situation. Could you please assist us in finding a solution to resolve the issues related to this land?
Thank you.
From India, Bijapur
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Next to this factory, there is a sister concern (B) of the existing running company. These two factories share the same survey numbers. Recently, we have discovered that the sister concern company has a substantial amount of PF, ESI, and other government statutory dues. If these are not paid by the company or recovered by them, the same liabilities could be passed on to us as we have bought a portion of the land from company (A).
We are unsure about the best course of action and how to proceed in this situation. Could you please assist us in finding a solution to resolve the issues related to this land?
Thank you.
From India, Bijapur
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Dear Ash, Did you buy/acquire loss making company or bought just property which also includes an industrial use shed. Pls clarify.
From India, Delhi
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141From India, Delhi
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Hello Umesh , We bought it only as a shed and a property , we have not taken over the company . We want to start a different company here by different name and registrations . Regards, Ashwin
From India, Bijapur
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From India, Bijapur
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Understanding Leasehold Land in Industrial Areas
Generally, industrial sheds' land is leasehold land, for example, G.I.D.C. (in Gujarat), M.I.D.C. (in Maharashtra), etc. In any industrial area, one can only buy and sell the construction portion of the unit, not the land.
In your case, you are correct in stating that you are not taking over Company X but only purchasing a part of its assets, specifically the construction part of the shed.
Steps to Ensure a Clear Property Purchase
Before buying any type of property, you should obtain a title clearance certificate from a competent lawyer with a search of the last 25 years. The lawyer, after considering the property papers and conducting a search of the property from the office of RoR, should publish a public notice in two newspapers—one in a vernacular language and one in English—inviting and requesting any interested parties, liens, mortgages, etc., to come forward within 10 to 15 days in writing.
In my opinion, you should seek the help of a lawyer.
Regards, A. Prakash
From India, Halol
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Generally, industrial sheds' land is leasehold land, for example, G.I.D.C. (in Gujarat), M.I.D.C. (in Maharashtra), etc. In any industrial area, one can only buy and sell the construction portion of the unit, not the land.
In your case, you are correct in stating that you are not taking over Company X but only purchasing a part of its assets, specifically the construction part of the shed.
Steps to Ensure a Clear Property Purchase
Before buying any type of property, you should obtain a title clearance certificate from a competent lawyer with a search of the last 25 years. The lawyer, after considering the property papers and conducting a search of the property from the office of RoR, should publish a public notice in two newspapers—one in a vernacular language and one in English—inviting and requesting any interested parties, liens, mortgages, etc., to come forward within 10 to 15 days in writing.
In my opinion, you should seek the help of a lawyer.
Regards, A. Prakash
From India, Halol
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Legal Clarification on Severance Dues & Probation Period.PDF
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