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CLRA - Is there a prohibition for subsidiary company to engage holding company as contractor?


Is there a prohibition for subsidiary company to engage holding company as contractor? Is there any prohibition under CLRA or under any other act. Could you please advise.
From India, Delhi
Such kind of arrangement will be deemed as a camouflage arrangement and make the contract sham and invalid. Therefore, avoid such contracts
From India, Kannur
The subsidiary company can be a contractor. The CLRA Act prohibits engagement of workmen through contractor in certain works in any establishment.
If the subsidiary company is engaged as contractor and engaging workmen in core activities of the parent company shall be treated as a sham & camouflage contract.
From India, Mumbai
rkn61
625
A subsidiary company can not engage a holding company as a contractor. Such contracts are invalid.
From India, Aizawl
Sunny,
If the establishment of the subsidiary company is independent, having no financial integrality with the holding company, there is no bar in CLRA for engagement of contractors. However, the contractor should be duly licensed under CLRA
From India, Faridabad
This is the case of Holding company and its subsidiary company. How can anyone say that there will not be any financial integrality between the two. It is common that between these two there will be financial integrality.
From India, Kannur
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India, Delhi
20 May 2020 05.02.24 PM
Views: 445 Replies: 5 Appreciations: 0



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