https://www.taxtmi.com/caselaws?id=101912 The court ruled that the company's sale of a flat to its director, with deferred payment and interest, did not amount to giving a loan without approval. The court interpreted "loan" under section 295 of the Companies Act, emphasizing that the transaction did not meet the criteria of a loan. Consequently, the court granted the writ petition to quash the prosecution, distinguishing between financial accommodation and a formal loan. The judgment clarified that the company's actions did not violate section 295, as the debt arose from the sale transaction, not a direct loan. en-us Thu, 03 Aug 1989 00:00:00 +0530 Mon, 13 Feb 2012 11:07:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101912 The court ruled that the company's sale of a flat to its director, with deferred payment and interest, did not amount to giving a loan without approval. The court interpreted "loan" under section 295 of the Companies Act, emphasizing that the transaction did not meet the criteria of a loan. Consequently, the court granted the writ petition to quash the prosecution, distinguishing between financial accommodation and a formal loan. The judgment clarified that the company's actions did not violate section 295, as the debt arose from the sale transaction, not a direct loan. Case-Laws Companies Law Thu, 03 Aug 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101912