Section 185 of companies act 2013

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 February 2016 One partnership firm give land and building on lease of 5 years to the Pvt. Ltd. now partnership firm provide this land and building as collateral securities to its associate LLP(Limited Liability partnership) .one of partner of LLP is director in Pvt. company).Section 185 is applicable to this situation .

Lease hold right is consider as security or not??

Please give clarification on it.....

Pratik Shah

Pratik Shah (Expert)
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01 March 2016 Obviously not. Section 185 is not applicable in this case, the main reason is that Land and Building is not an asset of a Company. It is partnership firm which is providing the assets as collateral securities.