Section 297

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 Dear all ,

There is a contract between two public cos havong common directors . The contract is for takin on lease the furnitures from the other public company.

Now this is contracy of sub lease....the public co which has given the furniture on lease to the other public co has itself taken it on lease from a different pvt co....

This pvt co does not have common directors.

Now whether section 297 is applicable.....bcoz by givin the furniture on sub lease the public co is makin a profit.

Hope my query is understood.

Awaiting a quick response

Ajay Mishra

Ajay Mishra (Expert)
Follow

25 November 2013
Section 297 does not apply to:

1. Giving or taking loans.
2.Contract in respect of immovable property (as it is not 'good' ).{Letter No. 9/4190-CL-X dated 27.03.1990}.
3.Contract between two public Companies.
4.Contract of employment of director or managing or whole time director.[ Circuler No.8/11/75-CL-V dated 27.03.1975]
5.Contract for employment of relative of director.
6.Contract entered into by the company with the dealer on principle to principle basis. [Circuler No. FM 8/297/56-PR dated 02-08-1956]
7. Professional services of the nature given by firms of solicitors and advocates, etc.[circuler No. 8/11/75-CL-V dated 05.06.1975]
8.hiring of office premises on rent as the transaction is in immovable property. [Department Clarification dated 10-09-1990]

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 Whether in this case 299 and 301 will be applicable ?

Upgrade to CAclubindia Pro. Subscribe Now!

Ajay Mishra

Ajay Mishra (Expert)
Follow

25 November 2013 id section 297 is not applicable then section 301 will also not apply on this particular contract.