I have come across a transaction where against a genuine debt created for acquisition of a business, the acquiring company alloted its equity shares at par as consideration. It filed form 2 with RoC & showed it as a 'Cash Consideration'. RoC too has accepted it. Company feels it is in compliance with sec 75(1) of the act, read along with the circular dated 13/03/1978 issued by dept of company affairs.
I request if anyone can provide me more details about such transaction any such case law where similar situation was held to be cash consideration.
Thanks.
