Use of cash credit for payment of acquisition of car

SSG (1936 Points)

23 August 2015  

Can C.C. taken on hypothecation of stock and book debts be used for payment to vendor to purchase a car. The car is used in the business of the borrower.

Similarly can the installment of unsecured loans, for business purpose, from NBFCs can be paid from the C.C. A/c.

Please suggest.