Bank guarantee by a public limited company for a private limited company in which the directors are interested

As per sec. 185 of Companies Act, no company can give any loan or guarantee to any directors or any other person in whom directors is interested.

But in sec 185 it is written that save as otherwise provided in this act...what does thid phrase means?

save as otherwise provided in this act means to keep applicability of any other provision on the same subject unaffected or the provision of this act shall have effect notwithstanding to the contrary contained in the MOA or AOA of company.

If it means this then sec 186 allows for bank guarantee by a public limited company for pvt co

yes if it is in normal course of business

[[2] No company shall directly or indirectly —
[a] give any loan to any person or other body corporate;
[b] give any guarantee or provide security in connection with a loan to any other body corporate or person; and
[c] acquire by way of subscripttion, purchase or otherwise, the securities of any other body corporate,

exceeding sixty per cent. of its paid-up share capital, free reserves and securities premium account or one hundred per cent. of its free reserves and securities premium account, whichever is more.

By applying Harmonious interpretation:
Specific section prevails over general.
Here section 185 is specific and 186 is general.
In this case the public company cannot give guarantee to a private company.

https://www.google.co.in/amp/s/www.caclubindia.com/amp/articles/critical-analysis-of-section-185-and-section-186-of-the-companies-act-2013-25429.asp




Please read this once. ☺

After the. CA amendment act, 2017 public company can give guarantee in respect of loan of private companies in which director director of former company is interested provided :
Special resolution
Use of such loan for business purposes

Thanks & regards

Section 61 of amndmnt act states this but it is not yet notified