At and after the conclusion of the contract, the seller is obliged to immediately communicate to the buyer all communications, payments and information relating to the transaction he receives. 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. All communications, documents and other information must be communicated in writing between the buyer and the seller. This Agreement may be amended and supplemented by a written document executed by the Parties. Where any provision of this Agreement becomes unenforceable or invalid, that provision should be interpreted in such a way that it can be applied. There shall be no delay or omission in the exercise of the rights, powers or remedies incumbent upon buyer in the event of seller`s breach or omission under this Agreement. Any buyer should not forget to include a non-competition clause in their agreement, so that the seller can no longer compete with the buyer in the future. The conditions of competition must be in such a way that the seller does not engage the buyer`s key professional and does not attract the seller`s customer. 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. An asset sale contract is a must to ensure that the party receives the highest value from the sale or purchase of assets.
In addition, all the terms of the contract will be reviewed and the parties will be able to derive maximum benefits….