We have purchased part of the land of an industry that is closed. After 3/4 years of our purchase, we have received a notice from the Regional Provident Fund commissioner asking for payment of Provident Fund dues not paid by the closed industry. We simply purchased a part of its land, and we are not carrying on any trade or business on it.
How does the liability of the defaulting closed unit fall on us?
From India, New Delhi
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How does the liability of the defaulting closed unit fall on us?
From India, New Delhi
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If there was any PF outstanding by the previous owner, the land should have been sold to you without any encumbrances clause. Since you have now received the notice from the PF Authorities, the previous owner should be forwarded such notice with a cc to the PF Authorities.
From India, Pune
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494From India, Pune
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Please check the provisions of the agreement which you have entered with the purchaser. What does it say about the liabilities - who will bear past liabilities and/or future liabilities? If there is a clause in your favor, send a reply to the PF authority explaining your position along with a copy of the agreement and highlighting the clause in your favor. Also, send a copy of this reply along with the notice of PF department to the seller, i.e., the previous owner, and request them to take up the matter with PF authorities and also make good any losses incurred, if any.
In general, if a person buys a running business, they step into the shoes of the business owner and have to bear past and future liabilities unless there is a specific clause in the agreement regarding the past liabilities of the seller. Best wishes and regards.
From India, Chandigarh
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In general, if a person buys a running business, they step into the shoes of the business owner and have to bear past and future liabilities unless there is a specific clause in the agreement regarding the past liabilities of the seller. Best wishes and regards.
From India, Chandigarh
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