Section 7 in The Companies (Temporary Restrictions On Dividends) Act, 1974
7. Restrictions on other distribution. For a period of two years from the appointed day, no company to which this Act applies shall, except with the previous approval of the Central Government, by general or special order,-
(a)make any distribution out of its assets;(b)assume, whether conditionally or otherwise, any obligation to make distribution out of its assets;(c)grant any lo- an to any shareholder of the company: Provided that nothing in clause (c) shall apply to a company which is declared by the Central Government under sub- section (1) of section 620A of the Companies Act, 1956 , (1 of 1956 ) to be a Nidhi or Mutual Benefit Society.
