06 January 2012
M/S ABC is Pvt. Ltd. company which is merged u/s 391 to 394 with M/S PQR a limited company on 15/10/2011.Now M/S PQR has given loan to one of pvt. ltd company say LMN Rs 20 Cr upto 15/10/2011 and 25 Cr from oct to Dec 11 and repaid 15 cr after oct 2011. Mr. D is Director of PQR and also member and director of LMN .My question is whether sec. 295 will be applicable to PQR for loan given by ABC(which is merged with PQR) to LMN ? if yes on what amount on 20 cr or 25 cr or on both? . Can I take shelter that because of merger that amount is tfd to amalgamated company ? please reply asap
07 January 2012
uptill 15/10/2011 ABC was a pvt Ltd Co., so no question of Section 295 arises on Pvt Co. from 15/10/2011 it attains the status of Public limited Co after merging with PQR, which is a limited Co. So whatever given as loan by PQR (deemed as Resulting Co.) will cover under Section 295, becoz of Mr. D.
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