A ‘Going Concern Sale’ on an ‘As is Where Basis’ Means Sale of Both Assets & Liabilities

Visisth Services Limited Vs S. V. Ramani (NCLAT)

HELD THAT : A ‘going concern sale’ on an ‘as is where basis’ does not dissolve the corporate debtor, rather, it forms a part of the liquidation estate wherein the entire business, including assets and liabilities, including all contracts, licences, concessions, agreements, benefits, privileges, rights, or interests, is transferred to the purchaser. Therefore, it was concluded that the sale of a company as a ‘going concern’ means sale of both its assets and liabilities if it is stated on ‘as is where is basis’.

BRIEF FACTS:

1. On 12.10.2018, an Application under Section 10 of the Code filed by the Corporate Debtor was admitted by the Adjudicating Authority.

2. On 19.07.2019, an Order of Liquidation was passed, and Mr. S. V. Ramani/the first Respondent was appointed as Liquidator.

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