Sec 295 C

If it attract section 295(1)(c) which provide "any private company  of which any such director is a director or member" for loan or security given. section 4,5,6 provides penal provision by which only knowingly parties are held liable. Lending company is not liable for any penal provision and the security provided should be born by the knowing parties of contravewntion as such directior who give there assent for the transaction and so far in my view it also include private company also.

As far as matter of recovery of guarantee given public company will not be liable for this. Again Knowingly parties as describe in section will held liable.

further section 372A also should be looked into as guarantee given to another body corporate attract section 372A.