A foreign company has not filed the documents required under Chapter XXII. It entered into a supply contract in India and now wishes to sue the buyer for non-payment. Under section 393:

Correct answer: A) The contract is valid, but the company cannot bring a suit in respect of it until it complies with the applicable provisions

Explanation

Section 393 provides that failure to comply with Chapter XXII does not affect the validity of any contract, dealing or transaction, or the company's liability to be sued. However, the company cannot bring any suit, claim any set-off, make a counter-claim or start any legal proceeding in respect of it until it has complied with the provisions applicable to it.