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Clarify the clear concept of ultra vires transaction.

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Any activity which is carried outside the scope of legal power and authority of the company or is done out of the preview of MOA is known as ultra vires activity. In India, ‘Doctrine of ultra vires’ was expounded for the first time by Mumbai High Court in 1866 in the case of Jahangir R Mody Vs Shamji Laddha.

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