A substantial interest holder and a Director of a Pvt. Ltd.Company (paid up capital more than1 crore) transferred a Trademark to the Company for Rupee One only. Market value of the Trademark was about moe than a billion rupees. The director did not mind because he owned more than 90% shares of the company.
No prior approval of Central Govt. was obtained because it was thought that the "trademark" was neither "goods" nor "merchandise", and certainly not a service. Further, in effect it was as good as a gift.
Whether there is any violation of section 297 of the Companies Act. I recollect having seen an Article by Mr Ankur Garg , but now I am not able to trace that article. But that article did not have support of any judicial pronouncement.
The link leads to a very general reply. I am aware of them. I have asked a specific question- in substance which means that whether a Trademark is a "merchandise' or "goods" at all to attract the provisions of Proviso to section 297(1) of the companies act.