Is approval of CG required if purchase/sale is between two Private Companys having one common Director, for cash at prevailing market prices, the value of such purchase/sale exceeds Rs.5,000/-?
Let me Reframe the question with more details:
As per my interpretation of Section 297(2)(a), a Pvt Ltd is allowed to sell its products to another Pvt Ltd having Common Directors (Both having paid up capital of more than One crore) at prevailing market price for cash with no limit, there is no regular trading activity or business between the two Pvt Ltd. Therefore no Central Government approval required. Is this correct? Requesting to quote a case law, if so.
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