29 September 2010
A director transferred Rs. 5 lakhs amount by cheque to the company in need, and when there was funds flow, took back the amount of Rs. 1,00,000/- in cash five times. Can the director take back the loan in cash. Th amount was withdrawn by way of self cheque. Kindly guide
No branch of a banking company or a co-operative bank and no "other company" or co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit if-
the amount of the loan or deposit together with the interest, if any, payable thereon is twenty thousand rupees or more
CAclubindia
