TALI TRADERS PVT. LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner is a Limited Company, which was formed by converting a partnership firm by name Tali Traders in terms of Sec. 366 of the Companies Act, 2013. The said firm was the owner of the subject property under and by virtue of Ext.P2 document. Upon incorporation of the Company, all the assets of the partnership firm, including the subject immovable property, stood vested with the newly incorporated Company, statutorily, by operation of Sec. 368 of Companies Act, 2013.

(2.) Taking stock of such statutory vesting, mutation has already been effected in the name of the petitioner company and petitioner is accordingly the absolute owner in possession of the subject property. However, when the petitioner seeks financial facilities from banks, the entry in the Encumbrance Certificate stands in between. As per the Encumbrance Certificate, the subject property is in the name of the firm, which will be changed only pursuant to a corresponding entry to be made in Book No.1 in terms of the Registration Act and Rules. Petitioner seeks a direction to the 3rd respondent/Sub Registrar to make necessary entry in Book No.1 maintained under the Registration Act, as regards the vesting of the subject property in the name of the petitioner company.

(3.) Heard the learned counsel for the petitioner and the learned Government Pleader.