requirement of Common Seal

[Prakash Joshi]

Hi Friends,

Please share your views on the following query:

A Pvt Co was incorporated in 2011 it has not made a common seal then. In 2015 the companies amendment Act made common seal an optional. Now in 2024 the company takes a car loan. The bank insists to affix common seal on the loan docs citing the common seal clause in the AOA. Is the company legally bound to make a common seal and affix on the loan agreement.

Thanks & Regards

PC Joshi.