In Brief
Wave Industries purchased the Amroha sugar mill from the U.P. State Sugar Corporation under a slump sale agreement dated 17 July 2010. The State later demanded that the purchaser pay excise duty, penalty, and interest (₹5,68,797) for the pre-acquisition period. The Supreme Court held that liabilities arising from operations before the signing date constitute accrued (not contingent) liability and must be borne by the seller. As the purchaser did not operate the unit before acquisition, it cannot be held liable for pre-acquisition business obligations. The Court set aside the High Court order, allowed the appeal, and held the seller liable for the disputed amount.",
The lawyer headnote and full judgment text are available to registered users.