Restriction on non-cash transactions involving directors
Section 192 of the Companies Act, 2013 deals with restriction on non-cash transactions involving directors. No company shall enter into an arrangement by which-- (a) a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company; The Act came into force on 01 Apr 2014.
(1) No company shall enter into an arrangement by which--
(a) a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company; or
(b) the company acquires or is to acquire assets for consideration other than cash, from such director or person so connected,
unless prior approval for such arrangement is accorded by a resolution of the company in general meeting and if the director or connected person is a director of its holding company, approval under this subsection shall also be required to be obtained by passing a resolution in general meeting of the holding company.
(2) The notice for approval of the resolution by the company or holding company in general meeting under sub-section (1) shall include the particulars of the arrangement along with the value of the assets involved in such arrangement duly calculated by a registered valuer.
(3) Any arrangement entered into by a company or its holding company in contravention of the provisions of this section shall be voidable at the instance of the company unless--
(a) the restitution of any money or other consideration which is the subject matter of the arrangement is no longer possible and the company has been indemnified by any other person for any loss or damage caused to it; or
(b) any rights are acquired bona fide for value and without notice of the contravention of the provisions of this section by any other person.
Section 192, The Companies Act, 2013 (Act 18 of 2013).
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… The aforesaid was a mala fide exercise on the part of the appellants. 8.7 It is further required to be noted that when the appellant tried to change its status from private to public company, the same was subject to compliance of Sections 23, 31, 189(2) and 192 of the Companies Act, 1956. As observed and the findings recorded by the High Court and even from the RTI query, it is clear that the appellant did not furnish the certified copy of the Articles of Association (as amended) as required under the provision of Section 31(2A). It is the case on behalf of the appellant …
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… The aforesaid was a mala fide exercise on the part of the appellants. 8.7 It is further required to be noted that when the appellant tried to change its status from private to public company, the same was subject to compliance of Sections 23, 31, 189(2) and 192 of the Companies Act, 1956. As observed and the findings recorded by the High Court and even from the RTI query, it is clear that the appellant did not furnish the certified copy of the Articles of Association (as amended) as required under the provision of Section 31(2A). It is the case on behalf of the appellant …
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… The aforesaid was a mala fide exercise on the part of the appellants. 8.7 It is further required to be noted that when the appellant tried to change its status from private to public company, the same was subject to compliance of Sections 23, 31, 189(2) and 192 of the Companies Act, 1956. As observed and the findings recorded by the High Court and even from the RTI query, it is clear that the appellant did not furnish the certified copy of the Articles of Association (as amended) as required under the provision of Section 31(2A). It is the case on behalf of the appellant …
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 192
What does Section 192 of the Companies Act deal with?
Section 192 of the Companies Act is headed "Restriction on non-cash transactions involving directors". No company shall enter into an arrangement by which-- (a) a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company;
How do I find court cases under Section 192 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 192, section 192 Companies Act, section 192 of the Companies Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 192 of the Companies Act, and has it changed?
One instrument names it without being made under it, most recently Clarification with regard to applicability of section 182(3) of the Companies Act,2013. (2013).
When did Section 192 of the Companies Act come into force?
Section 192 of the Companies Act, cited as Companies Act 192, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.