March 2024


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Section 26 – THE INDIAN CONTRACT ACT, 1872

Agreement in restraint of marriage, void Every agreement in restraint of the marriage of any person, other than a minor, is void. 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013

Section 26 – THE INDIAN CONTRACT ACT, 1872 Read More »

Section 25 – THE INDIAN CONTRACT ACT, 1872

Agreement without consideration, void, unless it is in writing and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law Anagreement made without consideration is void, unless—(1) it is expressed in writing and registered under the law for the time being in force for theregistration of 1[documents], and is made on account of natural love and affection between partiesstanding in a near relation to each other ; or unless(2) it is a promise to compensate, wholly or in part, a person who has already voluntarily donesomething for the promisor, or something which the promisor was legally compellable to do; orunless;(3) it is a promise, made in writing and signed by the person to be charged therewith, or by hisagent generally or specially authorized in that behalf, to pay wholly or in part a debt of which thecreditor might have enforced payment but for the law for the limitation of suits.In any of these cases, such an agreement is a contract.Explanation 1.—Nothing in this section shall affect the validity, as between the donor and donee, ofany gift actually made. Explanation 2.—An agreement to which the consent of the promisor is freely given is not voidmerely because the consideration is inadequate; but the inadequacy of the consideration may be taken intoaccount by the Court in determining the question whether the consent of the promisor was freely given.Illustrations(a) A promises, for no consideration, to give to B Rs. 1,000. This is a void agreement.(b) A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his promise to B into writing andregisters it. This is a contract.(c) A finds B‟s purse and gives it to him. B promises to give A Rs. 50. This is a contract.(d) A supports B‟s infant son. B promises to pay A‟s expenses in so doing. This is a contract.(e) A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 on accountof the debt. This is a contract.(f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A‟s consent to the agreement was freely given. The agreement is acontract notwithstanding the inadequacy of the consideration.(g) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A denies that his consent to the agreement was freely given.The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not A‟sconsent was freely given 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013

Section 25 – THE INDIAN CONTRACT ACT, 1872 Read More »

Section 24 – THE INDIAN CONTRACT ACT, 1872

Agreement void, if considerations and objects unlawful in part If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.IllustrationA promises to superintend, on behalf of B, a legal manufacture of indigo, and an illegal traffic in other articles. B promisesto pay to A a salary of 10,000 rupees a year. The agreement is void, the object of A‟s promise, and the consideration for B‟spromise, being in part unlawful. 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013

Section 24 – THE INDIAN CONTRACT ACT, 1872 Read More »

Section 23 – THE INDIAN CONTRACT ACT, 1872

What considerations and objects are lawful, and what not The consideration or object of an agreement is lawful, unless—it is forbidden by law4 ; oris of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent ; or involves or implies, injury to the person or property of another; orthe Court regards it as immoral, or opposed to public policy.In each of these cases, the consideration or object of an agreement is said to be unlawful. Everyagreement of which the object or consideration is unlawful is void.Illustrations(a) A agrees to sell his house to B for 10,000 rupees. Here B‟s promise to pay the sum of 10,000 rupees is the considerationfor A‟s promise to sell the house, and A‟s promise to sell the house is the consideration for B‟s promise to pay the 10,000 rupees.These are lawful considerations. (b) A promises to pay B 1,000 rupees at the end of six months, if C, who owes that sum to B, fails to pay it. B promises togrant time to C accordingly. Here, the promise of each party is the consideration for the promise of the other party, and they arelawful considerations.(c) A promises, for a certain sum paid to him by B, to make good to B the value of his ship if it is wrecked on a certainvoyage. Here, A‟s promise is the consideration for B‟s payment and B‟s payment is the consideration for A‟s promise, and theseare lawful considerations.(d) A promises to maintain B‟s child, and B promises to pay A 1,000 rupees yearly for the purpose. Here, the promise ofeach party is the consideration for the promise of the other party. They are lawful considerations.(e) A, B and C enter into an agreement for the division among them of gains acquired or to be acquired, by them by fraud.The agreement is void, as its object is unlawful.(f) A promises to obtain for B an employment in the public service and B promises to pay 1,000 rupees to A. The agreementis void, as the consideration for it is unlawful.(g) A, being agent for a landed proprietor, agrees for money, without the knowledge of his principal, to obtain for B a leaseof land belonging to his principal. The agreement between A and B is void. as it implies a fraud by concealment, by A, on hisprincipal.(h) A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value ofthe things taken. The agreement is void, as its object is unlawful.(i) A‟s estate is sold for arrears of revenue under the provisions of an Act of the Legislature, by which the defaulter isprohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser, and agrees to convey the estateto A upon receiving from him the price which B has paid. The agreement is void, as it renders the transaction, in effect, apurchase by the defaulter, and would so defeat the object of the law.(j) A, who is B‟s mukhtar, promises to exercise his influence, as such, with B in favour of C, and C promises to pay 1,000rupees to A. The agreement is void, because it is immoral.(k) A agrees to let her daughter to hire to B for concubinage. The agreement is void, because it is immoral, though the lettingmay not be punishable under the Indian Penal Code (45 of 1860). 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act

Section 23 – THE INDIAN CONTRACT ACT, 1872 Read More »

Section 22 – THE INDIAN CONTRACT ACT, 1872

Contract caused by mistake of one party as to matter of fact —A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact. 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013

Section 22 – THE INDIAN CONTRACT ACT, 1872 Read More »

Section 21 – THE INDIAN CONTRACT ACT, 1872

Effect of mistakes as to law A contract is not voidable because it was caused by a mistake as to any law in force in 1 [India]; but a mistake as to a law not in force in 1 [India] has the same effect as a mistake of fact. 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013

Section 21 – THE INDIAN CONTRACT ACT, 1872 Read More »

Related party transactions

A related party transaction is a two-party contract which is accompanied by a pre-existing business relationship or mutual interest. For example, it would be a related party agreement to have a contract between a major shareholder of a company and the company if such shareholder agrees to renovate the offices of the company. Companies also aim to establish business relationships with parties they are familiar with or have common interests. While these kinds of transactions are legal, they may pose a conflict of interest or lead to another illegal situation. Therefore, related party transactions have to be approved by agreement of management or board of directors of the company. If unchecked, the misuse of related party transactions could result in fraud and financial ruin for all parties involved. Who is a Related Party? Following are the related parties with respect to Company LMN Ltd (LMN Ltd is taken as an example for explaining purposes). Let’s say, Mr L, M, and N are directors in this company. The related parties for the company, in general, are as under: Sl no Related Parties Examples 1. A director or his relative (Relative means a member of the same HUF, husband, wife, father, stepfather, mother, stepmother, son, stepson, son’s wife, daughter, daughter’s husband, brother, stepbrother, sister, step-sister) Mr L, Mr M and Mr N are directors and the relatives of these Directors are considered as related parties. 2. Key managerial personnel or his relative Say, Mr O is a Company secretary, his relatives will be considered related parties 3. A firm in which a director, manager, or relative is a partner Mr L is a partner at RST. Pvt. Ltd, another firm. This firm will also be considered as a related party. 4. A private company in which a director, manager, or relative is a member or director Mr. M is a director in M Pvt Ltd – In this case M Pvt. ltd becomes a related party. Even when Mr. M’s relative is a member or director in M Pvt ltd, this company will be considered as a related party. 5. A public company in which a director or manager is a director and holds along with his relatives more than 2% of its paid-up capital Mr. N along with his relatives holds more than 2% of the paid-up capital of N ltd. In this case, N Ltd will be considered as a related party. 6. Any body corporate whose board of directors, MD or manager is required to act in accordance with the advice, directions or instructions of a director or manager (NA in cases when these directions are followed in a professional capacity) When P Ltd acts on the directions of Mr. L, P Ltd will be a related party. 7. Any person on whose advice, directions or instructions a director or manager is required to act (NA when this is done  in a professional capacity) Mr A holding 51% in LMN Ltd on whose advice Mr L has to act will be considered as a related party. 8. Holding, Subsidiary or Associate of such company These all will be considered as related parties:– ABC Ltd holding 51% in LMN Ltd (Holding Company)– LMN Ltd holding 51% in XYZ Ltd (Subsidiary Company)– DEF Ltd holding 30% in LMN Ltd (Associate Company) 9. Any company which is a subsidiary of a holding company to which it is also a subsidiary PQR & LMN are both subsidiaries of ABC ltd. Thus, PQR also becomes a related party Meaning of Related Party Transactions Since we are acquainted with the term related party let us dive into the transactions covered. The broad categories are mentioned hereby: Sl no Transactions as per Companies Act requiring approval of the Board by resolution Transactions as per The Companies (Meetings of Board and its Powers) Rules 2014 requiring approval by the company by resolution 1. Goods and Material: Sale, purchase or supply Sale/Purchase/Supply of goods/material directly or through an agent covering 10% or more of turnover OR one hundred Crores (whichever is lower). 2. Property: Selling or buying or leasing Sale/Purchase of property directly or through an agent that is 10% or more of net worth OR one hundred Crores (whichever is lower). In case of leasing of property directly covering 10% or more of turnover OR one hundred Crores (whichever is lower). 3. Agent for (1) and (2) above Availing or rendering of services directly or through an agent which is 10% or more of turnover OR fifty Crores (whichever is lower). (All the above limits are to be taken on all transactions done on a financial year basis.) Sl no Transactions as per Companies Act requiring approval of the Board by resolution Transactions as per The Companies (Meetings of Board and its Powers) Rules 2014 requiring approval by the company by resolution 4. Others:– Availing of or the rendering of services– Underwriting of securities or derivatives– Related partys’ appointment to a place of profit or office* in the company/subsidiary/associate– If the Director or individual other than director/firm/private company/body corporate receive from the company an amount over and above the remuneration (In the case of directors) and anything by way of remuneration for others will need the approval of the Board by a resolution. – Related party’s appointment to the place of profit or office* in the company/subsidiary/associate where the remuneration exceeds two and a half lakh.– Underwriting of securities or derivatives when remuneration exceeds 1% of the net worth. Related Party Transactions in India In India, various regulations clearly outline the definition of a related party transaction. It helps to ensure that they are conflict-free. In the case of a company, it helps to ensure that it does not negatively affect the shareholders’ value or its profits. The Institute of Chartered Accountants of India (ICAI) introduced Accounting Standard 18- ‘Related Party Disclosures’ and made it mandatory for businesses to report related party transactions in the financial statements. Apart from this, various laws refer to these transactions. SEBI Governs Related Parties and Related Party Transactions The SEBI Clause 49 also states certain regulatory requirements for related party

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Company Information Published by MCA

The Ministry of Corporate Affairs (MCA) is a government portal containing details of all the companies incorporated in India. It has details of all the types of companies and Limited Liability Partnership (LLP). One can check the Company registration number, type of company, date of incorporation, charges of a company, directors of the company, etc. from the site. The balance sheets and other documents of a company along with annual returns are also available on the website for payment of appropriate fees. On incorporation of a company or LLP, many of the information about the company and its Directors are made publicly available on the MCA website. This information including email addresses of company is used by marketers to contact newly incorporated companies. In this article, we look at the rules relating to the publishing of company information on the internet. The Central Government may perhaps by order companies usually or any company or class of company to furnish any information or statistic with reference to constitution or working of the company within a time that is specified in the order. Free Information Published on MCA Portal The Ministry of Corporate Affairs publishes the following information pertaining to a company on the MCA Master Data website on the incorporation of a company: Company / LLP Information CIN – Corporate Identification Number Company Name ROC Code Registration Number Company Category Company SubCategory Class of Company Authorised Capital Paid-up Capital Number of Members Date of Incorporation Registered Address Address other than Registered Office where all or any books of account and papers are maintained Email Whether Listed or not Suspended at the stock exchange Date of last Annual General Meeting Date of the Balance Sheet Company Status(for efiling) Charges Data- Charges data consists of charges created by lenders of the Company on its assets against the money lent. The following charges information is published: Assets undercharge Charge Amount Date of Creation Date of Modification Status Director Details DIN of the Director or LLP Partner Name of the Director or LLP Partner Date of Appointment Date of Resignation, if applicable Related Company Details- Additional details about the Directors of the Company like related company and related LLP can also be gleaned. The following additional information are available: List of Related Companies List of Related LLPs Paid Information Available on MCA Portal Incorporation certificate Documents filed during incorporation Extracts of certain board meetings Extract of the AGM and Annual Report Any other information filed by the company with the MCA and allowed to be published to the public Power of Central Government In addition to the above, the Central Government enjoys certain powers to request a company to publish certain information or statistics as follows: Every government order for information and statistics will be published in Official Gazette and may perhaps be addressed to the companies generally or any class of companies. The date of publication will be deemed to be the date on which necessity for information or statistics is imposed on companies. The Central Government may possibly by the order have need of a company or companies to produce records or documents in its possession or permit inspection thereof by officers or furnish additional information. If a company fails to furnish to meet the terms with an order or intentionally furnish any information or statistics incorrect or unfinished in any material respect, the company will be punishable with fine which may expand to Rs. 25,000 and every officer of the company who is in default, will be punishable with imprisonment for a term which may perhaps extend to six months or with fine which will not be less than Rs. 25,000 but which may perhaps extend to Rs. 3 lakhs or with both. Where a foreign company performs business in India, all references to a company in this segment shall be deemed to comprise references to the foreign company in relation, and only with reference to such business. FAQs What is CIN? The Corporate Identification Number (CIN) is a 21 digits alpha-numeric code issued to companies on being registered by the Registrar of Companies (ROCs) situated in different states across India under the Ministry of Corporate Affairs (MCA). The CIN is the unique identification number of a company and must be entered in all the forms required to be filed by the company on the MCA portal. What is ROC? The Registrar of Companies ( ROC ) is an office under the MCA, which deals with the administration of companies in India. The  Registrar of Companies (ROCs) is operating in all the major states/UT’s. The ROCs register companies across the states and the UTs, maintain a registry of records concerning companies that are registered with them and allow the general public to access this information on payment of a stipulated fee. What are assets under charge? A charge means a right or interest obtained by a creditor or lender in the property of the company by way of security that the company will pay back the debt. A company’s borrowings are backed by securities, on the strength of which loans are given to them by the banks and financial institutions. Assets under charge are the assets of the company upon which a charge is created for the company’s borrowing. Every company creating or modifying a charge on its property or assets should register the particulars of charge with the ROC within 30 days of such creation. The company registration search provides the details of the assets under the charge of the company registered with the ROC. 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 Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export

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Specimen of minutes of board meeting

The minute of the general meeting is an integral document of the Company, which must be drawn up and kept in the same way as accounting books. The minutes are a summary of the distilled wisdom of the board, their views, thoughts, and aspirations, providing strategic guidance and a blueprint for setting it on a growth trajectory. Writing good minutes is just as important as preparing deeds and contracts. The topic should be precise and in simple language so that the reader can understand it even years later. Therefore, registration has its meaning in the provisions of the Companies Act, 2013 and the Secretarial Standards issued by ICSI as a statutory requirement for companies. What are the minutes of the meeting? Minutes are the official record of the meeting. They help to understand the proceedings and decisions taken at the meeting. There is no restrictive language for recording meeting minutes or a format to adhere to.Records kept under the provisions of the Companies Act can serve as evidence in court. For example, the only way to prove that a board resolution was passed at a board meeting is to submit the minutes in which the relevant resolution was entered before the court. Minute book- The minutes of the meetings should be kept in a book of minutes kept for this purpose at the registered office of the company or a place approved by the board of directors. The law prohibits entries in a record book, so entries cannot be typed and then written in a bound record book or loose sheets. Also, the entry should not be printed on a piece of paper, whether on letterhead or any other paper, and inserted in the record book to preserve the integrity and probative value of the record. Courts in the past invalidated board meetings due to the failure of recording minutes in a proper book under the Companies Act 2013. Therefore, a minute book should be kept and segregated for different proceedings such as board meetings and meetings of various board committees. Format of the minutes of the meeting Details of participants: In the case of minutes of company meetings, the name(s) of the members of the board of directors present and the manner of their participation must be stated. If all directors are physically present, the minutes need not specifically record the manner of attendance. However, the minutes should record the method of participation if any director participates by video conference or other electronic methods, along with the location from which he participates.If a company secretary is involved, details of the company secretary must be provided. The minutes must include details of any other person who is present and those invited. Finally, the minutes of the meeting must include the names of the directors who applied for and were granted leave. Elections and quorum: The minutes of the meeting must contain a record of the election of the chairman of the meeting. Furthermore, it should also include details of the presence of the Quorum. If a Resolution is present at the commencement of a Meeting, but subsequently any Director leaves before the adjournment of the Meeting, as a result of which the requirement for a Resolution for business taken thereafter is not met, the Meeting should be adjourned and a declaration to that effect should be recorded in the minutes. Resolution details passed: The minutes of the meeting should contain the text of resolutions (resolutions) adopted in circulation since the last meeting, including any disagreement or abstention from voting. If any director on the board of directors dissents or abstains from voting on any resolution passed by circulation, such dissent or abstention should be recorded in the minutes of the meeting. Details of Dissent and Opinions of Independent Directors: The views of the Director or Independent Director must be recorded in the minutes of the meeting, especially if the Director or any other person at the meeting insists on them. Furthermore, the minutes of the meeting must state the disagreement and the name of the director who disagreed with the resolution or abstained from voting on the resolution. Related Party Transactions: In the case of a limited liability company, the minutes of the meeting should record the fact that the interested director participated in the discussion and voted after disclosing his interest. If the executive did not participate in the meeting and did not vote on the item he was interested in, and in the case of a transaction with a related person, this information must also be recorded in the minutes. Miscellaneous items: The discussion of any item other than that contained in the meeting agenda with the consent of the majority of the members of the board of directors present at the general meeting and the approval of the decision taken on this item by the majority of the members of the board of directors of the company should be indicated in the minutes. Acknowledgment and closing of the meeting: If any acknowledgments need to be mentioned, they can be given before the deadline. Finally, the start and end time of the Meeting should be recorded in the minutes. Sample Minutes for the first Board Meeting Minutes of the first Board Meeting of ………………….. (Company Name), held on ………………….. (Day)… (Date, Month and Year) at ………………….. (Venue) from ………………….. (Time of Commencement). Present: ……………. (in the Chair) ……………. ……………. ……………. In attendance: …………… Company Secretary …………… Chairman for the Meeting Mr.………….. ………..was elected as the Chairman for the Meeting. Quorum The business before the Meeting was taken up after having established that the requisite Quorum was present. Leave of Absence Leave of absence was granted to Mr. / Ms. X who expressed his inability to attend the Meeting owing to his pre-occupation. Certificate of Incorporation The Board was informed that the company has been incorporated on… and the Directors noted the Certificate of Incorporation No……………. of …….…, dated ……….. Issued by the Registrar of Companies… Memorandum and Articles of Association A printed copy of

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Airport Authority Clearance

No height clearance objection certificate (NOC) is issued by India’s Airports Authority according to the Govt. The aim of India’s Ministry of Civil Aviation was to safeguard airspace in and around aerodromes in order to allow safe and regular aircraft activities and to avoid aerodromes to become unusable as a result of the growth of obstruction surrounding the airports. NOC relating to civil aerodromes is provided on behalf of the Central Government by the Appointed Officer (DO) of the Airports Authority of India (AAI). In the situation of State-owned and private aerodromes authorized by the Directorate-General for Civil Aviation, AAI’s appointed officers shall also grant a NOC. This ATMC is intended to standardize the process for granting NOC for height approvals to safeguard airspace around the aerodromes. This Air Traffic Management Circular (ATMC) also outlines the processes for review, revalidation, and appeal cases to be handled. Applicability This ATMC applies to all AAI staff who are responsible for the height clearance procedure and problem of NOC. This ATMC also extends to all Joint Venture Airports, Approved State Government, and Private Airports staff for whom AAI issues NOC for height clearance. Authority Airport Authority of India is the authority responsible for giving height clearances to the construction and expansion activities around the airport. Provisions AAI has set up 9 NOC offices headed by Designated Officer. They look after NOC applications for height clearance in respective of structures. NOC Committee is formed at regional and state levels which compromises of 5 members as per mentioned under para 5.1 of the circular. The application for obtaining NOC can be made to the designates officer through No Objection Certificate Application System (NOCAS), in respect of civil aerodromes. It is complete paperless process which is another achievement for AAI. Since all the work is paperless there is no need for hard copy instead scanned documents and undertakings are required to be uploaded and the grant of NOC letter and updates are sent to the applicant via e-mail and SMS. All other details can be viewed on the dashboard of the applicant and NOCAS has a mapping system which is available to both applicant and officer which is used to analyze the proposed sites. The application is available on the site of NOCAS. After an application is received in NOCAS, it is checked through auto settle criteria in para 6.1.8 of the circular. Various documents are required to be uploaded with the application of NOC, though different documents are mentioned for different NOCs- For buildings, chimneys, flyovers, structures etc. Certified co-ordinates of the site in WGS 84 (Refer NOCAS site). Certified elevation of site in meters Above Mean Sea Level (AMSL). Undertaking in 1A. In case application is filed by person other than owner or lessee, then authorization letter from them. Note: The scanned documents/copies are to be uploaded only in pdf. or jpg. Form with file not exceeding 500 kb/each. For Power Transmission lines Certified co-ordinates of the site in WGS 84 (Refer NOCAS site). Certified elevation of site in metres Above Mean Sea Level (AMSL). Undertaking in 1B. In case application is filed by person other than owner or lessee, then authorization letter from them. Note: The scanned documents/copies are to be uploaded only in pdf. or jpg. Form with file not exceeding 500 kb/each. In both cases, if proposed structure lies within the premises of airport, them permission letter is required from concerned airport operator. Co-ordinates under WGS 84 and elevation in AMSL is mandatory for applicant to upload. If plot size is less than 300 mtrs, then a single WGS 84 co-ordinate is required which is closest to airport and if it is more than 300 mtrs, then co-ordinates of all corners are required including nearest point from the airport. In case of triangular plot there are minimum 4 co-ordinates required for which 4th co-ordinate will be the side of the plot towards the airport different from rest 3 co-ordinates. Validity and Review of Application The validity of NOC letter is of 8 years and in between for re-validation (one time) without any assessment is allowed provided that the construction work has commenced by submitting an undertaking in Form 1C along with re-validation application. In case of Transfer of property to a new owner or lessee, the terms and conditions of the NOC applies to him too. An application for review may be filed by an applicant by an undertaking under Form 1D only when applicant des not get proposed height as he asked for in the application initially or when NOC has been issued to him but he wants to apply for more height. This review is carried out by NOC Committee. Appeals An appeal shall lie to the Appellate committee subject to following conditions and circumstances- If applicant is not satisfied with the height in NOC provided and wishes for greater height clearance under the validity of NOC. The application should be filed by owner and shall be addressed to Chairman, Appellate Committee mentioning the site. Fees for filing an appeal shall be made through payment gateway on NOCAS of Rs. 2 lakhs + GST. In case of Aeronautical study, after its approved by competent authority, fees shall be payable to AAI of Rs. 20 lakhs + GST and study shall be made as per Aeronautical Study Guidelines available on AAI website. Applicant has to file undertaking in Form 1E for such study. After the study has been done by AAI, the report shall be made available to the NOC committee who shall then communicate decision to Designated Officer and accordingly a revised NOC will be issued to the applicant. FAQs What is the jurisdiction of the regional offices? Regional offices at Delhi, Mumbai, Kolkata, Chennai and Guwahati have jurisdiction at Airports for which provide NOCs under administrative control of AAI. For regional offices at Ahmedabad, Bengaluru, Hyderabad and Nagpur the jurisdiction shall be at 56 kms within each respective airport and any other airport that falls in those 56 kms. Whether

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