Recently, we have bought a 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.
Beside this factory, there is a sister concern (B) of the existing running company. Both factories have the same survey numbers. Recently, we have found that the sister concern company has a huge amount of PF, ESI, and other government statutory dues. If these are not paid by that company or recovered by them, the same could be recovered by us as we have bought a part of the land of company (A).
We are unable to decide what to do and how to go about this. Can you please help us in finding a way to clear this land?
Thank you.
From India, Bijapur
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Beside this factory, there is a sister concern (B) of the existing running company. Both factories have the same survey numbers. Recently, we have found that the sister concern company has a huge amount of PF, ESI, and other government statutory dues. If these are not paid by that company or recovered by them, the same could be recovered by us as we have bought a part of the land of company (A).
We are unable to decide what to do and how to go about this. Can you please help us in finding a way to clear this land?
Thank you.
From India, Bijapur
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You have purchased an industrial shed, and therefore it must be in a notified industrial zone. Please note that generally, industrial land is always leasehold land. You can purchase only the construction portion of that particular industrial land. You are correct that you have not purchased the company but only one of its assets—the land.
You will need to engage a lawyer to obtain a title clearance. The lawyer, at your request, will take a search report from RoR. After obtaining the search report, they will publish a public notice in a local newspaper in two languages, i.e., one in vernacular and one in international language English, for the public at large to lodge any claims/rights/liens/mortgages/gifts, etc., within, say, 7 to 15 days. After collecting all the relevant information, they will issue a title clearance certificate.
Therefore, it is advisable for you to engage or appoint a proper lawyer for the same.
Regards, A. Prakash
From India, Halol
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36You will need to engage a lawyer to obtain a title clearance. The lawyer, at your request, will take a search report from RoR. After obtaining the search report, they will publish a public notice in a local newspaper in two languages, i.e., one in vernacular and one in international language English, for the public at large to lodge any claims/rights/liens/mortgages/gifts, etc., within, say, 7 to 15 days. After collecting all the relevant information, they will issue a title clearance certificate.
Therefore, it is advisable for you to engage or appoint a proper lawyer for the same.
Regards, A. Prakash
From India, Halol
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Statutory Compliance of a Industrial or Commercial Unit.xls
Legal Clarification on Severance Dues & Probation Period.PDF