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]
01 March 2012
Section 297 is not applicable to Immovable property. Reason is as follows:- i) Goods is not defined in Co's Act,1956. ii) So Sale of goods Act,1930 has to be referred to. iii) Goods, as per the act referred in clause (ii)above, means every kind of movable property. Thus sale or purchase as also lease of immovable property is out side the scope of 297.
01 March 2012
yes i agree the immovable property is not cover under the definition of GOODS, so this section not cover the sale of purchases of immovable property. Goods is not defined under Companies Act, so we take this defination from sales of goods act.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
01 March 2012
can you provide me the above mentioned letter dated 27.03.1990