MCA has issued a circular yesterday regarding applicability of Section 372A (Companies Act 1956) .In which it has been clarified that section 372A ,which deals with Inter corporate loans remain effective till section 186( The companies Act ,2013) notified by the MCA.
Earlier, MCA has notified 98 section wef 12.09.2013, which includes section 185 of Companies Act 2013 which is corresponding to Section 295 of the Companies Act, 1956 but does not includes section 186 of the New Companies Act ,2013, So there is general confusion among the corporates regarding applicability of Old Section 372A which has now been claried.
Government of India
Shastri Bhawan, 5th Floor, IA' Wing,
Dr. Rajendra Prasad Road,
New Delhi 110001
All Registrar of Companies
All Regional Director
Sub: - Clarification with regard to applicability of provision of Section 372A of the Companies Act, 1956.
This Ministry has received number of representations consequent upon notifying Section 185 of the Companies Act, 2013 dealing with loans to directors which is corresponding to Section 295 of the Companies Act, 1956. Section 186 of the Companies Act, 2013 is yet to be notified.
It is clarified that Section 372A of the Companies Act, 1956 dealing with inter-corporate loans continue to remain in force till section 186. of the Companies Act, 2013 is notified.
This issues with the approval of competent authority