Legal Question in Construction Law in India

if a Pvt Ltd Co. purchase a plot through its director 'X' and obtain the conveyance deed in the name of 'X'insteed of the name of that company. and built the multi story flats . than the company sell the floors through its same Director 'X' . is it a valid sale deed or not ? whether the conveyance deed is not in the name of that company but in the name of its director 'X'


Asked on 5/08/13, 12:22 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

08.05.2013

Dear Sir / Madam,

Since the conveyance deed is in the name of the Director, if the purchase is made by the Company through Company funds, the Director will have to convey the property to the Company. Otherwise, it will be deemed to be the personal transaction of the Director, and the amount paid by the Company will be treated as owed by the Director to the Company.

Regards,

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Answered on 5/08/13, 3:50 am


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