Whether s.297 & s.314 applicable on payt to director

no HUF is not covered under section 297 and 314

Thank you for discussing the query.

I think there are certain diferences of opinion on this point. Some people are replying that since HUF is recognised by its KARTA under companies act, so any transaction made with HUF will be counted as to be made with KARTA ?

With this view Provisions will be applicable on HUF also.

Please discuss further.

Thanks in advances for youe valuable opinion.

Section 314 of the Companies Act, 1956 will not be applicable in your case. 

Section 297 of the Companies Act, 1956 will be applicable as a contract with a HUF wherein the Director is the Karta or a Co-parcener, the contract will fall within the mischief of Section 297 and is not exempt from its provisions, as under Section 6(a) of the Companies Act a person is considered to be a relative of another if they are members of a Hindu Undivided Family. 

Thank you very much for discussing the query.

But, applicability part of both sections are same. so whether both sections should be applicable or none of above.

Would you please make it clear whether the following line used you, is given in any case-law :-

"a contract with a HUF wherein the Director is the Karta or a Co-parcener, the contract will fall within the mischief of Section 297 and is not exempt from its provisions"

dear smriti,

                        i think the question he askd his about his membrship in HUF and director is not karta

say if he is karta it wil be covered

Dear Sripal, According to my understanding Section 297 will be applicable if Director is karta or member (Co-parcener) of HUF in both the cases applicabilty will be same.

Dear Sripal Sir & Smriti Dhawan Mam,

My question is whether HUF itself (Not Mmebers) is a Relative under Companies Act.

AND

Whether HUF is recognised a seperate legal entity under Companies Act.

Thanks for your particiaption & reply.

I would like to ask a question whther the director of the company is member or karta of HUF ?

thank you for showing interest in the query.

Director is the KARTA of HUF. But refer my question once again please.