Company Law

Registration of charges [Ch. VI]

1.

What is Charge? [S. 2(16)]

means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage;

2.

When to file for registration? [S. 77(1), R. 3(3)]

Charge created/modified BEFORE 2-Nov-18 ↓

Charge/modified created AFTER 2-Nov-18 ↓

File within 30 days

File within 30 days

If not, on application, RoC may allow up to 300 days on payment of additional fees

If not, on application, RoC may allow upto 60 days on payment of additional fees

If not, within 6 months from 2-Nov-18 on payment of additional fees – different fees for different class of Cos.

If not, on application, RoC may allow further 60 days on payment of advalorem fees

If Co fails to register as mentioned above and the registration is effected on the application of the charge-holder ➔ charge-holder entitled to recover fees or additional fees or advalorem fees paid by him from the Co

3.

Satisfaction of charge [S. 82]
  • Co/Chargeholder to file within 30 days of payment or satisfaction in full of any charge registered
    • Extension up to 300 days of such payment/satisfaction possible on application by the Co/Chargeholder

4.

Rectification in reg. of charges [S. 87]

If CG satisfied that – ➔

  • Omission to register charge/give intimation to RoC of payment/satisfaction of charge within specified time
  • Omission/misstatement w.r.t. any charge/modification/satisfaction/memorandum of satisfaction/any entry made u/s. 82/83
  • Omission to give intimation to RoC of creation/modification of charge

    Was accidental/inadvertent/other sufficient clause/not prejudicial to creditors or SH of the Co

  • on any other grounds, it is just and equitable to grant relief

CG may direct -

  • the time for filing particulars /registration of charge/intimation of payment/satisfaction be extended
  • Omission/misstatement be rectified

Now, Co CANNOT seek extension u/s. 87 for registration/modification of a charge

5.

Forms to be substituted

18Form Nos. CHG-l, CHG-8 and CHG-9 substituted with effect from 1-Aug-2019