Monday, June 16, 2008

Companies Act_Practicle Problems_6

X a director of a Public limited company with a paid up capital of Rs 5 Crores has provided unsecured loan of Rs. 150 Lakhs to the company. X does not have a license of Money lending but is carrying on the business of money lending regularly. Whether ‘supply of money’ is ‘supply of service’ as contemplated by section 297? Whether this transaction will attract section 297? Whether answer would be different if X has a license as Money lender? Whether lending of money by an NBFC which is private Limited company in which X is a director will attract section 297?

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