27 September 2020
Mr. A has taken loan from Mr. B of Rs. 100000/- and has repaid part of the loan of Rs. 50000/- to Mr. B through a Company M/s XYZ Pvt. Ltd. in which Mr. A is a Director. Whether such payment shall be considered repayment or not. Is there any consequence to be faced by the company or Mr. A in the above transaction.
07 October 2020
As per sec 185 of Companies Act,2013 no company shall directly or indirectly advance any amount to its director. Hence XYZ cannot repay the debt to Mr.B
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