Validity of sale of proprietorship firm, developmet agreement

Manoj (Querist) 08 January 2012 This query is : Resolved
‘A’ a proprietor of proprietorship firm having business of construction/ developer, ‘A’ enters into development agreement with ‘X’i.e.landowners. Now ‘A’ sold his proprietorship firm (goodwill) and immoveable property to ‘B’ however it was sold vide a agreement to sell duly notarized in state of Gujarat.
Then ‘B’ executes new development agreement with same ‘X’i.e. landowners. The said land is then developed by B and residential units are being constructed and is almost complete.
Now my query is :

(1) When a proprietorship firm is sold what documents need to be executed when sale involves the goodwill and immoveable property, what is the stamp duty required to be paid in state of Gujarat and whether it is required to be registered.
(2) Now as the ‘B’ replaces ‘A’ as proprietor of the firm, whether new development agreement excecuted by ‘B’ with ‘X’Landowners is this valid in this case. Can ‘A’ claim any right in future.
(3) Now land is developed, construction is complete and units are ready for allotment. Now in this case can a bank finance this scheme. Can a Bank give loan on individual units.
(4) what is the solution available with the Bank if Bank want to finance the scheme. What documents Bank needs to get executed in its favour to secure its interest.

Follow Query

Report Abuse

Raj Kumar Makkad (Expert) 08 January 2012
Your query is totally commercial which is against the ethics and aim/objects of this site so please engage a CA or local lawyer specifically to deal with your matter.