March, 2024 | CA B K Goyal & Co LLP

Section 31 – THE INDIAN CONTRACT ACT, 1872

THE INDIAN CONTRACT ACT, 1872 / CA Bhuvnesh Goyal / March 2, 2024

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Gross merchandises value (GMV)

Business / CA Bhuvnesh Goyal / March 2, 2024

Gross Merchandise Value (GMV), also referred to as gross merchandise volume, is the total amount of sales a company makes over a specified period of time, typically measured quarterly or yearly. GMV is calculated before accrued expenses are deducted. Accrued expenses include costs associated with advertising/marketing, delivery costs, discounts, and returns. What Is Gross Merchandise Value (GMV)? Gross merchandises value (GMV) is the total value of merchandise sold over a given period of time through a customer-to-customer (C2C) exchange site. It is a measure of the growth of the business or use of the site to sell merchandise owned by others. Gross merchandise value (GMV) is often used to determine the health of an e-commerce site’s business because its revenue will be a function of gross merchandise sold and fees charged. It is most useful as a comparative measure over time, such as current quarter value versus previous quarter value.GMV is also known as gross merchandise volume; both phrases indicate the total monetary value of total sales. How to Calculate Gross Merchandise Value Gross Merchandise Value can be calculated in a number of different ways. The simplest and most often used formula is given below: Gross Merchandise Value = Sales Price of Goods x Number of Goods Sold GMV, using the calculation above, can be seen to also represent gross revenue. For example, if an online company sells 15 customized notebooks at $10 per notebook, the GMV would be $150. Advantages and Disadvantages of GMV Advantages- Since retailers may or may not be the producers of the goods they sell, measuring the gross value of all sales provides insight into the company’s performance. This is especially true in the customer-to-customer market, where the retailer serves as a third-party mechanism for connecting buyers and sellers without actually participating as either. It may also provide value to retailers in the consignment sector, as they never officially purchase their inventory. Even though the items are often housed within a company’s retail location, the business functions as the authorized reseller, often for a fee, of another person’s or entity’s merchandise or property. Generally, they are never the true owner of the items, as the person or entity that placed the item on consignment may return and claim the item if they so choose. Disadvantages- Although GMV represents the total value of goods sold on a C2C exchange, it doesn’t truly reflect the profitability of a company; primarily the true revenue that a company earns from fees. For example, if a company’s GMV was $500 for the month, that entire $500 does not go to the company; the majority of it will go to the individual who sold the goods. The company’s true revenue would be the fee that it charges for the use of its site. If the fee was 2%, the company’s true revenue would then be $500 x 2% = $10. Depending on the type of e-commerce site, GMV can have other disadvantages. For example, if a company were an online retailer that produced and sold its own goods, GMV would indicate its revenues, but it would only be one metric, providing a limited view. It would not tell you the number of customers visiting the site or how much revenue is from repeat customers, which are important indicators in terms of customer satisfaction and thus the long-term health of the company. Pros Provides insight into a company’s performance Allows for comparison with competitors Simple and quick calculation to perform Cons Not a true reflection of a company’s actual revenue A limited metric that does not take into consideration other factors, such as repeat customers Customer-to-Customer Retailers Customer-to-customer (C2C) retailers provide a framework, or system, for sellers to list items they have in inventory and for buyers to find items of interest. The retailer functions as an intermediary, facilitating the transaction, commonly for a fee, without actually being a buyer or seller at any point within the transaction. In many of these customer-to-customer sales, the retailer facilitating the transaction never comes in contact with any of the physical merchandise. Instead, the seller will send the item directly to the buyer once the financial portion of the sale is complete.This model may differ drastically from other retail models in which the retailer purchases merchandise from producers, manufacturers, or distributors and then essentially functions as an authorized reseller of goods the company has purchased. Gross Merchandise Value (GMV) vs. Gross Transaction Value (GTV) While GMV can be defined as the total dollar value of everything sold through a marketplace in a given period of time, gross transaction value (GTV) is a calculation of the revenue in relation to commissions. GTV is used more in businesses that operate on commissions, as GTV is equal to the number of items sold multiplied by the price collected. It is calculated by multiplying the number of transactions by the average order value by the total number of transactions made and items sold. It tends to be used by e-commerce companies with a marketplace where multiple sellers transact. FAQs Is Gross Merchandise Value the Same as Revenue? Depending on the type of e-commerce site, GMV is the same as gross revenue. However, for sites like eBay, it is a reflection of the total value of goods sold, but not the actual revenue the company makes, as a portion of those revenues is for the sellers of the goods. The actual revenue that eBay makes would be from the fees it charges on the sales. What Is Gross Merchandise Value in a Startup? In a startup, GMV is the gross merchandise revenue: the total revenue that a company generates through the sale of its goods or services. It is important that GMV is measured in conjunction with net sales, which takes into account deductions. How Is Gross Merchandise Value Calculated? GMV is calculated by multiplying the total amount of goods sold by their sales price in a given period. GMV = Sales Price of Goods x Number of Goods Sold. The Bottom Line– Gross merchandise value (GMV) is the total value of goods sold

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Process of Extension of holding Annual General Meeting

Companies Act 2013 / CA Bhuvnesh Goyal / March 2, 2024

Section 96 of the Companies Act, 2013 provides that each company other than a one person company will in every year hold an Annual General Meeting of its investors and not over 15 months will exceed between the date of one Annual General Meeting of the company and that of the next. Procedure to file application for extension of time for holding AGM As provided under Section 96 of the Companies Act, 2013, each Company other than a One Person Company will in every year hold notwithstanding some other meetings, a general meeting as its Annual General Meeting. Not over 15 months will slip by between the date of one Annual General Meeting of a company and that the next. In case of first Annual General Meeting, it shall be held within 9 months from the date of ending the first financial year of the Company. In some other cases, annual general meeting will be held within 6 months from the date of closing of the financial year. The Registrar may, for any exceptional explanation, extend the time inside which any annual general meeting, other than the first annual general meeting, will be held, by a period not surpassing 3 months. Reasons for extension of holding of AGM Non-marking of fiscal reports because of non-accessibility of Auditors because of abdication, demise, inadequacy to sign or such other explanation. Non-availability of fiscal reports because of some other legitimate explanation. Non-marking of fiscal reports by the Managing Director because of non-accessibility of a Managing Director. Non-availability of Director. Abrupt passing of Directors, and because of this limit of directors goes under the minimum requirement of directors Such other substantial and valid reasons. Compounding for the offence of not holding AGM Compounding of offence infers an instrument wherein the defaulter company settles default by paying the money rather than a prosecution, in this way avoiding litigation. If the Annual General Meeting isn’t held inside the due date as referenced without applying for extension for holding of AGM with the Registrar of Companies then the company should apply for compounding of that offence with the National Company Law Tribunal (NCLT). Section 441 of the Companies Act, 2013 relates to the compounding of offences. The offences which are culpable with fines and punishments must be compounded either by Regional Director (RD) or by the National Company Law Tribunal (NCLT). Procedure to file application for extension of time for holding AGM Chairman/head of a company will hold a meeting of the Board of Directors for which notice should be sent no less than 7 days before the gathering. To hold a general meeting on a set date. Pass a resolution for extension of time limit for AGM determining the reason behind the extension for holding of AGM. To file an application to the Registrar of companies in Form No-GNL1. In GNL-1, the reason for not holding AGM alongside essential information is to be given. To connect the copy of Board resolution in E structure GNL-1. Follow up with the office of Registrar of Companies. The registrar will analyze the application and may allow an expansion, whenever fulfilled. To acquire the certificate of grant of extension in holding AGM of the company. Effects of grant of extension for holding Annual General Meeting When the extension is being granted, the company might start the Annual General Meeting of the Company inside the period as permitted by the Registrar of Companies. Extension maybe granted just once in a Financial Year as the Act doesn’t permit the Registrar of Companies to give further extension FAQs Why would a company need to extend the holding of its AGM? Companies may need to extend the AGM if they face unforeseen circumstances, legal or logistical issues, or if there are challenges in meeting regulatory deadlines. How can a company formally extend the AGM date? The company should follow the legal procedures outlined in its jurisdiction, which may involve obtaining shareholder approval or seeking regulatory permission. This often requires convening a meeting of the board of directors or shareholders. Is shareholder approval required for extending the AGM date? It depends on the company’s articles of association and applicable laws. In some cases, shareholder approval may be necessary, especially if the extension goes beyond the statutory timeframe. 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Karnataka Professional Tax

Government Schemes / CA Bhuvnesh Goyal / March 2, 2024

Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and must be compulsorily paid by every staff member employed in private companies. The business owner is responsible for deducting professional Tax from his employees’ salaries and can then pay the amount so collected to the appropriate government department. Professional tax is a kind of tax levied by the state government on salaried or self-employed individuals. As per Clause 2 of Article 276 of the Indian Constitution, it is applicable to all kinds of professions, employment, and traders in the particular state. Only 17 states impose a professional tax in India, and Karnataka is one of them. Professional Tax in Karnataka The Karnataka state government is responsible for collecting professional tax, depending on your gross income. Whether you are working in a private organisation or are associated with a government entity, it is mandatory for all individuals to pay professional tax in Karnataka. Additionally, self-employed individuals, doctors, chartered accountants, lawyers, etc., must pay this tax to the local authorities assigned to collect the professional tax. On the other hand, the respective employers levy professional tax in Karnataka for salaried employees. Karnataka Professional Tax Act The Karnataka Tax on Professions, Trades, Calling and Employment Act 1976 has laid out the provisions for professional tax payment within the state. As per the Karnataka professional tax rule, the government levies this tax on an individual depending on their income. So, if you are a working professional in Karnataka, knowing the tax slab rates is crucial. Professional Tax Slab In Karnataka Here’s a table for a complete understanding of the professional tax slab rate in Karnataka. Monthly Salary Range Amount Payable per Month Rs 1 to Rs 9,999 0 Rs 10,000 – Rs 14,999 0 Rs 15,000 and above Rs 200 On the other hand, as per Karnataka professional tax act, the amount of tax payable by an employer who is established as per the Karnataka Shops and Commercial Establishment Act, 1961, is as follows: Number of employees in the organisation Tax Rate Between 1 to 5 Rs 1000 Between 5 to 10 Rs 1500 Higher than 10 Rs 2500 As per the tax slab, it is imperative for all businesses and employers to make payments on or before April 30 every year. Also, the rule requires employers with an enrolment certificate to file an annual return within 60 days of the financial year closure. Applicability of Karnataka Professional Tax he professional Tax must be remitted by individuals and business entities engaged in any profession, trade, callings, or employment — government and private. It is mandatory for both salaried and self-employed individuals to pay professional Tax, which is collected by the Karnataka State Government. For salaried employees, the professional Tax is levied by employers, whereas non-salaried professionals need to pay it to local authorities appointed for collecting the Professional Tax. Doctors, advocates, chartered accountants and every other individual engaged in private professions is liable to pay professional Tax in Karnataka. Professional Tax in Karnataka is applicable to the following categories: The professional Tax for a salaried individual will be deducted by the employer from the salary. Business entities such as: Sole proprietor Partnership firms Limited Liability Partnership Corporations Hindu undivided family (HUF) Firms Company and other corporate bodies Society Club or Association Note: Separate PT registration process on the PT website of the Commercial Taxes Department is not required for companies registering under the Spice+ application process from 8th October 2020. How to Pay Professional Tax in Karnataka? For salaried individuals: For salaried individuals who receive their salary every month, the employers will deduct professional Tax, as per the slabs, from the salary. This is deposited to the concerned authority in the state on behalf of the salaried individual. For Self-employed individuals: self-employed individuals and professionals who are not working on a salary basis i.e. those who are not working with any organization and working independently need to pay professional Tax, which can be done by contacting tax offices established in the state to collect the professional Tax. For organizations: For organizations, the employers need to register as per the state government of Karnataka’s professional tax regulations. Professional Tax Payment Online in Karnataka If you want to pay professional tax in Karnataka, here is a stepwise guide for you. Visit the official website of the Commercial Taxes Department Karnataka and select ‘e-Payment’. Once redirected, click on ‘Next’. After that, from the available options, click on Karnataka Professional Tax. Now select the ‘Dealer Type’ and fill out the necessary information. Select the ‘Next’ option to verify all your provided details. Click on the ‘submit’ option and note down the auto-generated number for future reference. Click on the ‘Click here for payment’ option. Follow the instructions on the screen and click the ‘submit’ option to complete the payment. Finally, payment details will appear on the screen. Karnataka Professional Tax Payment Due Date The due date varies from state to state. In Karnataka, every individual liable to pay professional tax must pay it every month before the 20th. Karnataka Professional Tax Late Payment Penalty The Karnataka state government levies a penalty for late payment of professional tax. A 1.25% penalty is imposed in such cases. The maximum penalty applicable is 50% of the total outstanding amount. Karnataka Professional Tax Exemption Self-employed individuals who have not served as an employee for more than 120 days in a financial year. Salaried individuals with a monthly gross income of less than Rs 15,000 per month. Senior citizens above 60 years are eligible for professional tax exemption. Blind, deaf and dumb individuals or people diagnosed with nearly 40% of permanent disabilities. Members of the Armed forces, such as the Army, Air Force and Navy. Foreign technicians employed in the Karnataka state. FAQs Is professional tax compulsory in Karnataka? Yes. Both salaried and self-employed professionals are eligible to pay professional tax in Karnataka. Who is eligible for professional tax in Karnataka? All individuals earning Rs 15,000 or above in Karnataka are eligible to pay professional tax

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Approval of Mining Plan

Government Schemes / CA Bhuvnesh Goyal / March 2, 2024

Minerals concession for major minerals are granted under the provisions of MMDR,1957(Amendment,2015),MCR,1960 and MCDR,1988. For major minerals reconnaissance permit, prospecting license and mining lease are granted. The approval of the mining plan is required to commence mining operations. Therefore, the lease is granted on the basis of an approved plan. Mine plans are a set of plans, cross-sections, longitudinal sections that show the entire workings of a mining or quarrying operation. MINING LEASES-STEP BY STEP PROCESS Identify the minerals you wish to mine: The first step in obtaining a mining lease is to identify the minerals you wish to mine. Different minerals require different types of mining leases, and the process for obtaining them may vary. Obtain a prospecting license: Before applying for a mining lease, you must obtain a prospecting license from the relevant state government. This license allows you to explore the area for minerals and assess the commercial viability of the deposit. Prepare a mining plan: Once you have identified the minerals and assessed their viability, you must prepare a mining plan that outlines the proposed mining operations, including the equipment and methods to be used, the estimated reserves and production, and the environmental impact assessment. Obtain necessary clearances: Before the mining lease is granted, you must obtain several clearances from various authorities, including the environmental clearance from the Ministry of Environment and Forests, and the forest clearance from the State Forest Department. Apply for a mining lease: After obtaining all the necessary clearances, you must apply for a mining lease with the State government. The application must include the mining plan, a statement of the estimated reserves, and a statement of the royalty and other fees to be paid. Await approval and execute the lease agreement: Once the application is submitted, the State government will evaluate the proposal and grant the mining lease if it meets all the criteria. If the application is approved, the mining company must execute the lease agreement with the State government. PROCEDURES: An application for grant of mining lease/reconnaissance permit/prospecting license shall be made to the State Government in Form 1/FormA/FormB respectively as per rule 22(1) of Mineral Concession Rule,1960. Application shall be accompanied by non-refundable fee calculated @ of Rs.5.00/sq km or part thereof payable in accordance with MCR, 1960 for reconnaissance permit. For prospecting license @of Rs.250.00/sq.km or part thereof and Rs.250.00 for each additional sq.km. For mining lease Rs.2500.00. A valid clearance certificate in the form prescribed by State Government of payment of mining dues such as royalty, dead rent or surface rent payable under 22(3)(i)(d) of Mineral Concession Rule,1960. In case if applicant does not hold and has not reconnaissance permit, it shall not be necessary for him to produce the said certificate but required to furnish an affidavit to the satisfaction of the State Government. In case the applicant is a partnership firm or a private ltd. Company such certificate shall be furnished by all persons of partnership firm or as the case may be all members of Private Ltd. Company. An affidavit stating that the applicants filed up to date income tax returns paid the income tax assessed on him and paid the income tax on the basis of self-assessment as provided in the income tax Act,1961(43 of 1961) as per rule 22(3)(i)(f) of MCR,1960 to be furnished. An affidavit showing particulars of areas mineral wise in the State, which the applicant or any person jointly with him already holds under(i) a reconnaissance permit(ii) applied for but not granted(iii) being applied simultaneously, as per rule 22(3)(i)(g),of MCR,1960 to be furnished. A statement in writing that the applicant has, where land is not owned by him, obtained surface rights over the area or has obtained consent of the owner for starting mining operations as per rule 22(3)(i)(h) of MCR,1960. Applicant shall attached cadastral map showing applied area and detailed statement of area applied for. Memorandum and Articles of Association of Company/Deed of registration of company and deed of partnership of firm/company. In respect of Minerals specified in schedule 5(1) of Mines and Minerals(Development & Regulation) Act,1957,prior to approval of Govt. of India has to be obtained before grant of mining lease as per the provision of section 5(1)of MMDR,1957. As per the section 5(2) of MMDR,1957 no mining lease shall be granted unless the area applied for has been prospected earlier or existence of mineral contents has been established. As per section 6(1)(b) of MMDR,1957,if the total area hold under mining lease together with the area applied for grant of lease exceeds 10.00sq.km.clearance from the Govt.of India. If the area is not continuous or compact block relaxation of section 6 (1)(c) of MMDR,1957 from the State Govt. has to be obtained. If the area applied for mining lease >5.00 and<50.00hects the clearance for the State environment impact assessment authority is necessary and for >50.00 hects clearance from the Ministry of Environment is necessary for using forest area for non-forest purposes. If the mining lease applications is found to be in order, as per provisions contained in sub rule 4 of rule22 of MCR,1960,the precise area will be communicated to the applicant with instructions to submit a mining plan. Before the execution of deed, an applicant shall deposit a sum of rupees as security deposit for (i) reconnaissance permit Rs.20.00/sq.km.or part thereof, for prospecting license Rs.250.00/sq.km.and Rs.10000.00 for mining lease. Every mining lease holder shall have to prepare EIA and EMP for mining lease area more than 5 hect and obtain permission for Govt.of India as per prevalent rules All mining lease holder shall pay in theDMFT as per rule 9B of MMDR,2015. For minor minerals Procedure for the grant of mining lease/contracts/permit of minor minerals of X and Y schedule as per the Assam Minor Mineral Concession Rule, 2013. The application shall be in the prescribed format ML-1 of AMMCR,2013. No persons shall undertake any prospecting or mining operation activity in respect of any minerals in any part of the State, except under and in

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Average selling price (ASP)

Business / CA Bhuvnesh Goyal / March 2, 2024

The term average selling price (ASP) refers to the price at which a certain class of good or service is typically sold. The average selling price is affected by the type of product and the product life cycle. The ASP is the average selling price of the product across multiple distribution channels, across a product category within a company, or even across the market as a whole. What is the Average Selling Price (ASP)? The average selling price (ASP) is a term that refers to the price that a good or service is sold for. As the name implies, it is an average price. If a company sells hundreds of thousands of cell phones each year at different prices, you calculate the ASP by taking the total revenue earned by cell phone sales and divide that amount by the total number of units sold. The average selling price can be used as a benchmark in a few different ways. Companies entering a new market may look at the ASP of a good or service to position themselves when they bring their product to market.Companies will often report their ASPs during quarterly earnings calls. Analysts and investors will look at the trend of a company’s average selling price and draw conclusions from it. The price of a product will depend on the type of product and where the product is in its product cycle. As a product ages and becomes obsolete, the average selling price often decreases. Other names for average selling price include “average order value,” which is commonly seen in e-commerce. In the hospitality industry, a similar metric called “average daily rate” shows the average rate customers will pay for one day’s stay at their properties. How to Calculate Average Selling Price (ASP) A luxury handbag maker saw a big year in 2020. They sold 10,000 units at $250 each, 13,000 units at $220 each, and 20,000 units at $180 each. Let’s calculate what their average selling price was. First, let’s calculate the total amount of revenue the company earned. 10,000 * $250 = $2,500,000 13,000 * $220 = $2,860,000 20,000 * $180 = $3,600,000 The total amount of revenue earned by the company was $8,960,000. Next, we add up the number of units sold, which comes out to 43,000. The final step is to divide the total revenue by the number of units sold. The calculation results in an average selling price of $208.37. Uses of the Average Selling Price 1. Entry strategy- Companies that are entering a new market can use the average selling price to create their strategy on how they want to position themselves. Imagine that a company is looking to begin manufacturing men’s sunglasses. When they look at the market, they see that the ASP of sunglasses is $65. The business may decide to set their price at $100 to position themselves as a premium retailer. They may set the price at $50 to be a value retailer or come in with a price equal to that of the market. It depends on what the business thinks is the best and most profitable route.Entering at a lower selling price may result in tight profit margins. Entering at a premium price may lead to higher margins, but lower sales numbers. 2. Trends and decision-making- For companies currently in the market with a specific product or service, they can use the average selling price to identify trends and make decisions. If a company specializes in financial services and sees the average selling price of a certain service dropping over time, it can be a sign that the market for that service is drying up. The demand is declining, and the company must exit the market. A rising ASP isn’t always a positive thing, and a declining ASP isn’t always a negative thing. For example, a company initially sells video game consoles at $400 per unit and sells 100,000 units in the first year. That is $40,000,000 in revenue. The next year they drop their average selling price to $300 per unit. A 25% drop may sound frightening, but with the fall in price, the company ended up selling 200,000 in the second year for $60,000,000 in revenue. Revenue increased by 50% even though the selling price decreased. Lowering prices to achieve a larger volume of sales is a tradeoff that businesses are willing to make. It works in the other direction as well. A rising ASP will eventually reach a point where each increase in price drives down the volume of sales, eventually making it detrimental to raise prices any further. For Investors and Analysts 1. Draw conclusions- The investment community will analyze the average selling price to try to make conclusions about a product or service, a business, or a market. Take GoPro as an example. GoPro’s business primarily revolves around one device – action cameras. When a company is mainly built on one product, the investment community will monitor the average selling price of that product. A drop in price can point to rising competition, lower pricing power with their customers, or a decrease in demand, which can lead to failure. FAQs Why is the ASP important for businesses? ASP is important for businesses as it provides insights into pricing trends, helps in setting competitive prices, and serves as a key metric for evaluating the overall revenue performance of a product or service. What factors can influence changes in ASP? Changes in production costs, demand fluctuations, competitive pricing strategies, changes in market conditions, and shifts in consumer preferences can influence variations in ASP. How often should businesses calculate ASP? The frequency of calculating ASP depends on the industry, market dynamics, and the need for up-to-date pricing information. It is common for businesses to calculate ASP quarterly or annually. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual

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Section 30 – THE INDIAN CONTRACT ACT, 1872

THE INDIAN CONTRACT ACT, 1872 / CA Bhuvnesh Goyal / March 1, 2024

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Section 29 – THE INDIAN CONTRACT ACT, 1872

THE INDIAN CONTRACT ACT, 1872 / CA Bhuvnesh Goyal / March 1, 2024

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Section 28 – THE INDIAN CONTRACT ACT, 1872

THE INDIAN CONTRACT ACT, 1872 / CA Bhuvnesh Goyal / March 1, 2024

Agreements in restraint of legal proceedings, void [Every agreement,—(a) by which any party thereto is restricted absolutely from enforcing his rights under or inrespect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits thetime within which he may thus enforce his rights; or(b) which extinguishes the rights of any party thereto, or discharges any party thereto, from anyliability, under or in respect of any contract on the expiry of a specified period so as to restrict anyparty from enforcing his rights,is void to the extent.]Exception 1.—Saving of contract to refer to arbitration dispute that may arise.—This sectionshall not render illegal a contract, by which two or more persons agree that any dispute which may arisebetween them in respect of any subject or class of subjects shall be referred to arbitration, and that onlythe amount awarded in such arbitration shall be recoverable in respect of the dispute so referred.3* * * * *Exception 2.—Saving of contract to refer questions that have already arisen.—Nor shall thissection render illegal any contract in writing, by which two or more persons agree to refer to arbitrationany question between them which has already arisen, or affect any provision of any law in force for thetime being as to references to arbitration 1[Exception 3.—Saving of a guarantee agreement of a bank or a financial institution.—Thissection shall not render illegal a contract in writing by which any bank or financial institution stipulate aterm in a guarantee or any agreement making a provision for guarantee for extinguishment of the rights ordischarge of any party thereto from any liability under or in respect of such guarantee or agreement on theexpiry of a specified period which is not less than one year from the date of occurring or non-occurring ofa specified event for extinguishment or discharge of such party from the said liability.Explanation.—(i) In Exception 3, the expression “bank” means—(a) a “banking company” as defined in clause (c) of section 5 of the Banking RegulationAct, 1949 (10 of 1949);(b) “a corresponding new bank” as defined in clause (da) of section 5 of the Banking RegulationAct, 1949 (10 of 1949);(c) “State Bank of India” constituted under section 3 of the State Bank of India Act, 1955(23 of 1955);(d) “a subsidiary bank” as defined in clause (k) of section 2 of the State Bank of India (SubsidiaryBanks) Act, 1959 (38 of 1959);(e) “a Regional Rural Bank” established under section 3 of the Regional Rural BanksAct, 1976 (21 of 1976);(f) “a Co-operative Bank” as defined in clause (cci) of section 5 of the Banking RegulationAct, 1949 (10 of 1949);(g) “a multi-State co-operative bank” as defined in clause (cciiia) of section 5 of the BankingRegulation Act, 1949 (10 of 1949); and(ii) In Exception 3, the expression “a financial institution” means any public financial institutionwithin the meaning of section 4A of the Companies Act, 1956 (1 of 1956).]. 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Section 28 – THE INDIAN CONTRACT ACT, 1872 Read More »

Section 27 – THE INDIAN CONTRACT ACT, 1872

THE INDIAN CONTRACT ACT, 1872 / CA Bhuvnesh Goyal / March 1, 2024

Section 27 – THE INDIAN CONTRACT ACT, 1872 Read More »

March 2024