A purchaser backing out from the transaction the consequences as available in law have to followed and take recourse – Kuldeep Verma Vs. Government of Kerala and Ors. – NCLAT New Delhi
The liquidator proposed sale of the shares of subsidiary company to Govt. of Keral which was approved by NCLT. However, Govt. of Kerala backed out from the purchase of the shares.
Hon’ble NCLAT held that a purchaser backing out from the transaction the consequences as available in law have to followed and take recourse, but no direction could be issued to compel the State to purchase the share.