Nak Chy And Vishwakarma Hydraulic Case Study

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It is humbly submitted before this Honourable Court that there was an existing contract between Nak Chuy and Vishwakarma Hydraulics according to Section 10 of the Indian Contract Act, 1872 which states that
"All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void."
Nak Chuy and Vishwakarma Hydraulics came into an agreement where Nak Chuy had to supply cranes to Vishwakarma and get paid for it. The contract was made out of free will, the parties were competent to contract, there was a consideration involved and it was lawful. Therefore, it can be safely said that the parties had entered into a contract. …show more content…

When a company acquires another company, all its assets and liabilities also go along. Since, there was a contract between Vishwakarma and Nak Chuy, there was now a contract between Nak Chuy and Iyer Associates and the liability to pay Nak Chuy was also transferred to Iyer Associates.
Section 232 (1)(b) of the Indian Companies Act 2013 states-
"under the scheme, the whole or any part of the undertaking, property or liabilities of any company (hereinafter referred to as the transferor company) is required to be transferred to another company (hereinafter referred to as the transferee company), or is proposed to be divided among and transferred to two or more companies."

Taking into account the above mentioned section and precedent, it can be concluded that Iyer Associates has to pay Nak Chuy after acquiring Vishwakarma Hydraulics. b) Acceptance of goods by Iyer

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