Finance company - lending loans by cash
Arjun Jaganathan
(Querist) 22 July 2015
This query is : Resolved
My client is a registered Public Limited Company dealing in Lending loan & Receiving deposits.
Case:
My client states that he has lent Rs. 30,00,000/- (Rupees Thirty Lakhs only) to one XYZ person as "mortgage loan" by cash. The same is also registered by "Deposit of Title deed" which reflects my company name in the Encumbrance Certificate.
Question:
1. Can a Public Limited company lend loan by cash. If so is there any provision under law.?
2. Is there any limit under which a company is allowed to deal in cash. Is it a general rule that any cash transaction above 20,000/- should be dealt in Cheque/DD..?? or is there any specific Provision.??
SAINATH DEVALLA
(Expert) 22 July 2015
A PLC cannot deal in cash any thing above 20,000.
Guest
(Expert) 22 July 2015
Mr. Arjun Jaganathan,
Your query is quite unrealistic and vague, as neither directors, nor the CS nor the CAs, nor the Mangers of a limited company are so illiterate or idiot to offer a loan of 30 Lakhs in cash to any borrower.
Your academic query also makes no sense, as you have not discussed about the real problem, what the company is actually facing.
Better ask sensible questions that too about realistic problems, not of vague academic nature.
SAINATH DEVALLA
(Expert) 22 July 2015
U R an advocate and U should have known this basic thing about transactions by PLC
Arjun Jaganathan
(Querist) 27 July 2015
Thanks for the reply.
I request the experts to encourage members of this group to ask questions rather than discouraging them.
Anyway thank for the expert opinion
Guest
(Expert) 27 July 2015
Questions on hypothetical and unrealistic problems cannot be encouraged.
Arjun Jaganathan
(Querist) 27 July 2015
Lawyers from all area of practice come to this forum. One may have expert knowledge in one field of practice and have lesser knowledge in another field, but that does not mean that the lawyer is illiterate or idiotic.
Experts could have just given one word answer rather than giving such a big reply terming the question as Academic.
If experts want to answer only to problems where only question of law is involved then they may please appoint an administrator who will filter such questions. Further no expert is forced to answer the questions, If any expert member feels that the question is of Academic nature then they need not answer such questions and just ignore them rather than wasting their precious time.
THANK U VERY MUCH EXPERTS
Guest
(Expert) 27 July 2015
Mr. Arjun Jaganathan,
Thanks for you advice cum direction to the experts, as well as to the administrator of this site.
SAINATH DEVALLA
(Expert) 27 July 2015
Mr.Arjun,
I presume U R still a learner in the field of law,the experts who have answered are all very seasoned Advocates with vast experience. As a lawyer when U post a query it should be clear in all aspects.It is mandatory that U should reply to the doubts raised by the legal experts in the right way but not vaguely.U have been adviced aptly by them as far as UR query is concerned.U R free to post a query or answer a query in the capacity of a lawyer.
Arjun Jaganathan
(Querist) 27 July 2015
Mr. SAINATH DEVALLA,
Thank you very much sir. I will take your advice and post queries accordingly.
