Section 297

This query is : Resolved

Chandranil (Querist)
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13 February 2010 In Case where there are two public co and both are having paid up capital above Rs 1 Cr. and enters into contract under 297 at the time of contract as both are public co they are exempted, but subsequently the status of one company changes to private co, now whether the permission of Central Govt is required ?

kindly provide supporting case law or notification

Jagruti (CS)

Jagruti (CS) (Expert)
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13 February 2010 Section 297 clearly states that at time of entering into contract, compliance need to be done.

If after wards even directors are interested or Company paid up goes above 1 crore or Section 297 becomes appliable at later stage of Contract.

Section 297 is not applicable.

Hence you do not have to get Central Govt approval

You can refer commentary from Ramaiya

Chandranil

Chandranil (Querist)
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15 February 2010 thank you madam,

but on the specific point I didnt find commentry in RAMAYA can you please specify me page No and edition

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CS Janak

CS Janak (Expert)
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15 February 2010 but when u apply for the conversion from public to private u have to make an application to Central Govt. and they will consider the point regarding Sec. 297.