Section 297

In both the case consideration paid is assuming at market value, section 297 is not applciable.

But the above consideration should be paid in cash and at prevailing market prices, this is what is mentioned in companies act under sec 297 2 (a)

Sec 297 (2) (a) : Exception

If Goods or Material are sold or purchased for CASH CONSIDERATION + at MARKET PRICE, then sec297 will not be applicable.

In Case 1 : Sec 297 will not be applicable if the cheque is paid to A Pvt Ltd AT THE TIME OF PURCHASING TICKETS.  But if the tickets hav been purchased on CREDIT BASIS, then Sec 297 will be applicable.

In Case 2 : Broking Services by B Private Limited is not covered in the exception of sec 297(2)(a). But there is another exception u/s 297(2)(b) - If either party regularly trade + transactions(here Brokerage) upto Rs.5000/-P.A. , then Section 297 will not be applicable.

Mr. Learner, you have not only the procedural knowledge but you have very much practical knowledge on company matters.

Thanks alot sir !!

I am just trying to improve myself !

thats it.

Dear Professionals,

I have query in Sub section 2(a) of sec 297 that does NEFT payments are also covered in the perview of Cash like Cheque?

Thanx in advance

Regards,

CS Prerna Jain