Company Law

Registration of charges [Ch. VI]

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

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

Charge created/modified BEFORE 2-Nov-18 ↓	Charge created / modified 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 ad valorem 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 ad valorem fees paid by him from the Co

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

Rectification in Register of charges
[S. 87]

If CG satisfied that – ↓

Omission to 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

was accidental/inadvertent/other sufficient cause/not prejudicial to creditors or SH of the Co

on the application of the Co / any person interested,

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