Registration of charges:
(Section 77 to Section 87 and the Companies (Registration of Charges) Rules, 2014)
-“charge” means an interest or lien created on the assets of the company or any of its undertakings or both as security and includes a mortgage.
- This is newly incorporated definition. Earlier Act did not define what is charge but
listed different types of charges which required registration.
-The issue whether Bankers' lien under Section 171 of the Indian Contract Act or Negative lien created by the loan agreements is required to be registered is still a grey area and is being debated. In our view both need not be registered. However, if any power of attorney is given the same should be registered.
- Under Section 77 particulars of all charges created on its property or assets or any of
its undertakings, within or outside India, have to be registered with Registrar of Companies (ROC) within thirty days from the date of creation of charges. It is necessary that all charges created in favour of the Bank are registered with ROC within thirty days else there is a possibility that the Bank may lose priority of the Charge.
- The ROC on the application of the company, on being satisfied that the company had sufficient cause for not filing particulars of charge within 30 days may allow registration after 30 days but within a period of 300 days from the date of creation of charge.
- If the particulars of charge or for modification or satisfaction of charge are not filed within 300 days the company or any person interested in registration of charge can file an application to the Central Govt. for condonation of delay and extension of time for filing particulars of charges. Central Govt. can impose conditions for extension of time
Sincere thanks to all who gave input/material and the training colleagues/organizations who took pains to prepare/disseminate knowledge.Compiled
from various sources. Please share this with colleagues within BANK only. Pl think twice before printing this and anything. Errors if any noticed
- Pledge is not expressly excluded by Section 77 but excluded in the Form CHG.1.It is advisable to register charge of pledge also under the head “others” in the Form1. Even if omitted to be registered the Bank can take umbrage under exclusion provided in the Form1.
- I f the company fails to register the charge within a period of 30 days from the date of creation of charge, the person (the BANK) can apply for registration of charge along with copy of the instrument by which charge was created, and the ROC with in a period of 14 days from such application, after giving notice to the company allow registration of charge subject to payment of fees.
. By virtue of Section 79 of the Act, provisions of Section 77 relating to registration of charge also apply to
(a) A company acquiring property subject to a charge;
(b) Any modification or extent or operation of the registered charge. In other words modification of charges is also to be registered.
- Under Section 82 the company has to report satisfaction of charges.
IMPORTANT- It is important to note that it is imperative that charges created in favour of the Bank are registered within a period of 30 days from the date of creation of charge. Otherwise it is possible that Bank may lose priority of charge created in favour of the Bank.
https://iibfadda.blogspot.com/2018/10/registration-of-charge.html?m=1
(Section 77 to Section 87 and the Companies (Registration of Charges) Rules, 2014)
-“charge” means an interest or lien created on the assets of the company or any of its undertakings or both as security and includes a mortgage.
- This is newly incorporated definition. Earlier Act did not define what is charge but
listed different types of charges which required registration.
-The issue whether Bankers' lien under Section 171 of the Indian Contract Act or Negative lien created by the loan agreements is required to be registered is still a grey area and is being debated. In our view both need not be registered. However, if any power of attorney is given the same should be registered.
- Under Section 77 particulars of all charges created on its property or assets or any of
its undertakings, within or outside India, have to be registered with Registrar of Companies (ROC) within thirty days from the date of creation of charges. It is necessary that all charges created in favour of the Bank are registered with ROC within thirty days else there is a possibility that the Bank may lose priority of the Charge.
- The ROC on the application of the company, on being satisfied that the company had sufficient cause for not filing particulars of charge within 30 days may allow registration after 30 days but within a period of 300 days from the date of creation of charge.
- If the particulars of charge or for modification or satisfaction of charge are not filed within 300 days the company or any person interested in registration of charge can file an application to the Central Govt. for condonation of delay and extension of time for filing particulars of charges. Central Govt. can impose conditions for extension of time
Sincere thanks to all who gave input/material and the training colleagues/organizations who took pains to prepare/disseminate knowledge.Compiled
from various sources. Please share this with colleagues within BANK only. Pl think twice before printing this and anything. Errors if any noticed
- Pledge is not expressly excluded by Section 77 but excluded in the Form CHG.1.It is advisable to register charge of pledge also under the head “others” in the Form1. Even if omitted to be registered the Bank can take umbrage under exclusion provided in the Form1.
- I f the company fails to register the charge within a period of 30 days from the date of creation of charge, the person (the BANK) can apply for registration of charge along with copy of the instrument by which charge was created, and the ROC with in a period of 14 days from such application, after giving notice to the company allow registration of charge subject to payment of fees.
. By virtue of Section 79 of the Act, provisions of Section 77 relating to registration of charge also apply to
(a) A company acquiring property subject to a charge;
(b) Any modification or extent or operation of the registered charge. In other words modification of charges is also to be registered.
- Under Section 82 the company has to report satisfaction of charges.
IMPORTANT- It is important to note that it is imperative that charges created in favour of the Bank are registered within a period of 30 days from the date of creation of charge. Otherwise it is possible that Bank may lose priority of charge created in favour of the Bank.
https://iibfadda.blogspot.com/2018/10/registration-of-charge.html?m=1
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