REGISTRATION OF CHARGES
Pursuant to the provisions of Chapter VI [Registration of Charge] and The Companies (Registration of Charges) Rules, 2014 of the Companies Act, 2013 Brief description on Registration, Modification and Satisfaction of charge:-
| SECTION – 77 (Duty to Register Charges) | It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating/modifying such charge in Form No.CHG-1(for other than Debentures) or Form No.CHG-9 (for debentures including rectification), with the Registrar within thirty days of its creation. |
| In case of charge is not created within 30 days | Registrar may, on an application by the company, allow such registration to be made:
(a) in case of charges created before the commencement of the Companies (Amendment) Ordinance 2019, within a period of three hundred days of such creation; if it is not registered in the said days, the registration of the charge shall be allowed to be made within six months from the date of commencement of the Companies (Amendment) Ordinance 2019, on payment of such additional fees as may be prescribed. (b) in case of charges created on or after the commencement of the Companies (Amendment) Ordinance 2019, within a period of sixty days of such creation, on payment of such additional fees as may be prescribed, if the registration is not made within the said period, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such advalorem fees as may be prescribed. |
| Rule 6 (Certificate of Registration) The companies registration of charge Rules, 2014 | 1) Where a charge is registered with the Registrar under sub-section (1) of section 77 or section 78, he shall issue a certificate of registration of such charge in Form No.CHG-2
(2) Where the particular of modification of charge is registered under section 79, the Registrar shall issue a certificate of modification of charge in Form No. CHG-3 |
| SECTION-82 (Satisfaction of Charge) | (1) A company shall give intimation to the Registrar in the Form – CHG-4, of the payment or satisfaction in full of any charge registered under this Chapter within a period of thirty days from the date of such payment or satisfaction.
Provided that the Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period of three hundred days of such payment or satisfaction on payment of such additional fees as may be prescribed. |
| A Notice shall be sent by the Registrar | (2) The Registrar shall, on receipt of intimation under sub-section (1), cause a notice to be sent to the charge holder calling upon him to show cause within such time not exceeding fourteen days, as may be specified in such notice, as to why payment or satisfaction in full should not be recorded as intimated to the Registrar, and if no cause is shown, by such charge holder, the Registrar shall order that a memorandum of satisfaction shall be entered in the register of charges kept by him under section 81 and shall inform the company that he has done so:
Provided that the notice referred to in this sub-section shall not be required to be sent, in case the intimation to the Registrar in this regard is in Form – CHG 4 and signed by the holder of charge. |
| Register of Charge | Every company shall keep at its registered office a register of charges in Form No. CHG.7 and enter therein particulars of all the charges registered with the Registrar on any of the property, assets or undertaking of the company and the particulars of any property acquired subject to a charge as well as particulars of any modification of a charge and satisfaction of charge. |
| Rectification in register of charges on account of omission or misstatement of particulars in charge previously recorded and extension of time in filing of satisfaction of charge – | The Central Government may ‘on an application filed in Form No. CHG-8’ allow the Rectification in register of charges on account of omission or misstatement of particulars in charge previously recorded and extension of time in filing of satisfaction of charge. |
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Thanks for the writing.