Seeking opinion on section 185 of ca, 2013

Vishnu Soni (Querist) 28 November 2014 This query is : Resolved
Dear Sir,
This is a basic query regarding interpretation on section 185 of section 2013. My query is as follows:
A Ltd. is holding company of B Ltd.
B Ltd. is intending to take loan of Rs. 3 Crore from bank. Now the bankers says that we can give loan only if the holding company gives guarantee to bank. On interpretation of section 185(1)(e) it is produced that company can't give guarantee for the loan taken by subsidiary company if borrowing company or MD, BOD or manager is accustomed to act in accordance with direction or instruction of board of directors of lending company.
Sir I want your opinion on this matter.
Kindly resolves it asap.
hoping for your reply sooner.
I'LL be grateful to you for your valuable help.

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