sec 75 of companies act1956:allotment of shares against debt

Querist : Anonymous (Querist) 29 January 2010 This query is : Resolved

I have come across a transaction where aganist a genuine debt created for acquisition of a business, the company alloted its equity shares at par. It filed form 2 with RoC & showed it as a 'Cash Consideration'. RoC too has accepted it. Company feels it is in compliance with sec 75(1) of the act, read along with the circular dated 13/03/1978 issued by dept of company affairs.

I request if anyone can provide me any such case law where similar situation was held to be cash consideration.

Thanks.

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