Rajan is a director of Kangana Ltd. His wife Mrs. Lata has applied for loan in Kangana Ltd. for construction of house for an amount of ₹30 lakh. Advise the company on the grant of loan with reference to the provisions of

Section 185 of the Companies Act, 2013 provide as under: (1) Save as otherwise provided in this Act, no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person; Subject to exceptions provided under the Act. (2) If any loan is advanced or a guarantee or security is given or provided in contravention of the provisions of sub-section (1), the company shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees, and the director or the other person to whom any loan is advanced or guarantee or security is given or provided in connection with any loan taken by him or the other person, shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees, or with both. Since, Wife of director is covered under "any other person in whom the director is interested" So in the given case loan application of Mrs. Lata for construction of house shall not be considered by Kangana Limited. If considered penal provision may be attracted to the company and officers of the company.