Civil Procedure Code (CPC)

Purchase property before the date of company formation


my clind has a partnership firm, on the date of 20th september 2009 applied for company and company approval done on 23rd of september, on this date company payment the fees and on 1st of october 2009 received incorporation certificate. But misguided, company transper the prperty partnership firm to company a/c on 30th of september2009. what is the process to rectified this matter.

 
Reply   
 
Advocate

Reregister it

the transfer in favor    of the unincorporated  company  has no legal effect , it is void abinitio,  since  the  legal transfer of property is only  possible   when  both  the tranferer  and the transferee  are juristic persons , unincorporated company  is not  a legal person and therefore  ,  property  does not pass  infavor of the  company,   it can be remedied by  retransfer  of the property  infavor the incorporated  company   

 
Reply   
 



Yes, agree with shantilala pandya ,Just reregister the property.

 
Reply   
 

The property was purchased by the Partnership Firm and if a Company incorporated under Part IX of the Companies Act, 1956, then the property transfered automatically from Firm to the Company but the Company was incorporated directly under other Companies of Companies Act 1956, nothing will happen.  

 
Reply   
 

Totally agreed with Shantilal Pandya SIr.............

 
Reply   
 
In-house Legal Counsel

Contracts made by the Company prior to incorporation of the Company, may also needs to be looked from the perspective of section 15(h) and 19(e) of the specific Relief Act, 1963. As per these sections, specific performance may be enforced against the company where the promoters, have before its incorporation entered int a contract for the purposes of the company and such terms and conditiosn are warranted by the terms of incorporation i.e. by inclusion in the Articles of association of the Company. Please also see the commentary of SEction 46 in Companies Act By Ramaiya..

So all pre-incorporation contracts per se may not be void ab initio under the specific relief act. however but since registration of immovable property needs to under the Transfer of property ACt, the relevent provisions may need to be confirmed therefrom.

 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

  Search Forum








×

Menu

Post a Suggestion for LCI Team
Post a Legal Query
Civil Litigation Course     |    x