Q.1 What is meaning of Charge? [Sec 2 (16)]
‘Charge’ 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.
Q.2 Which Charges are to be registered and to be registered by whom? [Sec 77 (1) & 78]
a. within or outside India;
b. on its property or assets or any of its undertakings;
c. whether tangible or otherwise;
within 30 days of creation of Charge.
However, when a Company fails to register the Charge within 30 days it can still register Charge till further 30 days by paying additional fees. Further if the Charge is still not registered 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.
Where a company fails to register the charge within the period of thirty days of Creation, the person in whose favor the charge is created may apply to the Registrar for registration of the charge along with the instrument created for the charge, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees.
Provided that where registration is effected on application of the person in whose favor the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge.
Q.3 What shall be effect of registration of Charge?
Q.4 Under what conditions the registration of Charge is mandatory other than on its Creation?
a. a company acquiring any property subject to a charge within the meaning of that section; or
b. any modification in the terms or conditions or the extent or operation of any charge registered.
Q.5 When a are the points to be kept in mind related to Register of Charge?
Q.6 When a Charge Satisfaction is to be reported to the Registrar and by whom?
Q.7 What is/are the Punishment for Contravention non-Registration of Creation/Modification/Satisfaction/ maintenance for Register of Charge?
List of Form Related to Charges
|Name of Forms||Particulars|
|CHG 1||Application to register the creation or modification of charge (other than debentures)|
|CHG 2||Certificate of registration of charge|
|CHG 3||Certificate of modification of charge|
|CHG 4||Intimation to the Registrar regarding particulars for the satisfaction of charge|
|CHG 5||Certificate of registration of satisfaction of the charge|
|CHG 6||Notice of appointment or cessation of a receiver or a manager|
|CHG 7||Register of charges created, modified and satisfaction by the company|
|CHG 8||Application to Central Government requesting an extension of time to file details of registration of creation or modification or satisfaction of charge as well as rectification any omission or misstatement of any details|
|CHG 9||Application for registering the creation or modification of charge for debentures including its rectification|
(Author – CS Nayan Pitroda proprietor of Pitroda Nayan & Co., Company Secretary in Practice can be contacted at +91 8866021210 and/ [email protected])