https://www.taxtmi.com/caselaws?id=97027 Pre-commencement contracts and expenses under section 103(3) of the Indian Companies Act are provisional and do not bind a company until it becomes entitled to commence business. Where a company never obtains that entitlement, formation, registration and management expenses incurred before incorporation cannot be recovered from it. General contract principles do not imply a promise to pay where the statute prevents a binding contract. On this basis, the claimant's pre- and post-incorporation expense claim was deleted from the company's debts and claims in liquidation. en-us Wed, 09 Feb 1949 00:00:00 +0530 Fri, 13 Jan 2012 17:02:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97027 Pre-commencement contracts and expenses under section 103(3) of the Indian Companies Act are provisional and do not bind a company until it becomes entitled to commence business. Where a company never obtains that entitlement, formation, registration and management expenses incurred before incorporation cannot be recovered from it. General contract principles do not imply a promise to pay where the statute prevents a binding contract. On this basis, the claimant's pre- and post-incorporation expense claim was deleted from the company's debts and claims in liquidation. Case-Laws Companies Law Wed, 09 Feb 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97027