Allotment of shares

how can Y Pvt. Ltd. Allots its shares to X Ltd. Creditor .?

because law says share can be allot with cash consideration or without cash. Here Mr. S did not bring any cash any other things for acquire share as per your query

When Y.Pvt Ltd allots shares to creditor of its parent company, The following adjustment should be made:

>Here Y.Co can reduce the investment of X.Ltd made in Y.Pvt.Ltd by the amount of shares alloted.

or it can Debit X.Ltd in its books.

This is a common adjustment seen in many cases.

>Shares can be alloted to creditors on dues.[Sri Ayyangar Spinning and Weaving mills Lts Vs V.V.V.Rajendran]