19 April 2011
Hey, I was wondering, does business fall under the definition of 'goods' under the Sale of Goods Act? Therefore will the transfer of a business fall under section 297 of the Companies Act, 1956?
19 April 2011
“Goods” means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale - [section 2(7)]of Sale of Goods Act Therefore,from the above ddefinition it is clear that business won't fall under the definition of 'goods'. Will the traanfer of a business fall under Sec297 of Companies Act has be referred with caselaws and circulars instead of judging based on primafacie appearance of the section.
CAclubindia
