Pravin (Associate) (127 Points)
06 August 2010Pls Explain,
We have 2 Pvt. Ltd. companies PIPL and PHPL (having Common Directors and shareholders). PIPL rented the building to PHPL for lease of 30 yrs. Both the companies having share capital more than Rs. 1 Crore. Whether Section 297 is applicable?
As per my interpretation as the property is immovable property and section 297 is not applicable.
seeking your views.
Regards,
Komal Gupta
(Company Secretary)
(57 Points)
Replied 06 August 2010
Dear Pravin,
I think that u must check that whether it is a buiness of PIPL renting the buildings. If yes, then it will attract sec 297 under service and even if the transaction is at market price then u need to have CG approval. If not, then sec 297 is not attracted.
Thanks
Komal Gupta
Jagruti (CS)
(Service)
(1953 Points)
Replied 07 August 2010
Section 297 is not applicable for transaction relating to the immovable property. Hence it is not applicable
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