Business transfer agreements in India are governed by the Indian Contract Act, 1872, which covers the general principles of the treaty, such as creation and mutual understanding and the Dirty Property and Guarantees Act of 1930. This agreement is governed by the general principles of contract law, as provided for by the common law. In examining the business transfer agreement, the Insurance Authority found that if conditions are included in the agreement, those conditions must also be met in order for the transaction to take place. If this is not the case, either party (or, in some cases, both parties) may have the right to withdraw from the agreement. When a buyer accepts a loan, mortgage, or credit or credit balance, they assume responsibility for the business. Buyers can take on some, all or none of the debts incurred by the seller during the life of the business. In the case “Rajeev Bansal and Sudershan Mittal” – [2020 (4) TMI 67 – AUTHORITY FOR ADVANCE RULING, UTTARAKHAND], the applicant is a partnership company engaged in the construction of residential and commercial complexes. The company was founded for the construction and sale of a residential/commercial building in Manoharpur village, Jwalapur, Hardwar. The applicant has had the card approved by the competent authority.
The covered area was approximately 1.25 square feet of Lakh. A total carpet area of 85 thousand square feet was built up to the date of transmission. Ronav Infrastructure, who worked in the same company, turned to the applicant to take over this incomplete project in order to continue the construction and sale of the building in question. The applicant concluded an agreement with Ronav Infrastructure for the transfer of the activity as a “continuous operation”. The main advantage of the company is the land, incomplete apartments built in the countryside and the approved map. On 24.10.2019, a separate certificate of sale for the transfer of housing was executed in accordance with Land law for ₹ 21.80 Crores. When intellectual property is transferred with the company, elements of the intellectual property right may apply, such as the Trademark Act 1999 or the Copyright Act 1957. The Authority considered that the transfer of Sitarganj`s business should be considered as a continuous undertaking and that it was exempt from GST at the time of Communication No 12/2017-Central Tax (rate) of 28.06.2017. Depending on the sector in which the company operates, other legal standards specific to that sector may also apply. After the conclusion and signature by all parties, this business transfer agreement constitutes a binding agreement between the parties, which allows them to make arrangements for the handover of the transaction.
If you buy assets in a company, you are not buying the company yourself, but only one aspect of it. This can mean a product, a customer list, or a type of intellectual property. . . .