MCA Circular No 23/2020 dated 17th June 2020 for relaxation of time for Registration/modification of charge Applicable to all type of Companies  with effect from 17th June 2020.

Forms covered      

  • Form CHG-1 (Creation or modification of charge)
  • Form CHG-9 (Creation or modification of charge for debentures)

Legal Provision

As per section 77 of the Cos Act e-Form CHG-1 and e-Form CHG-9 can be filed within a period of maximum 120 days from the date of creation or modification of the charge (within 30 days with normal fee, post application with Registrar of Companies –  beyond 30 days but up to 60 days with additional fees and beyond 60 days with additional fees and ad valorem fees)

Relaxation under MCA Notification:-

Situation Situation 1

(Date of Charge Creation/Modification is on or after 1st November 2019 (approx. 120 days before 1st March 2020)

(“the Relaxation period-1”)

Situation 2

(Date of Charge Creation/Modification is between 1st March 2020 to 30th September 2020)

(“the Relaxation period-2”)

What is the Relaxation § The period between 1st March 2020 to 30th September 2020 shall exempted and not counted for calculating the number of days within which forms were required to be filed

§ If the Company is unable to file Form up to 30th September 2020 (the relaxation period-1) then the 1st October 2020 shall be counted as day one for calculating the no of days within which the respective form is to be filed.

§ The date from creation/modification of charge up to 30 September 2020  shall be not be counted for calculating the number of days within which forms were required to be filed.

§ If the Company does not file the forms (within the relaxation period – 2), 1st October 2020 shall be treated as day 1 for counting the number of days within which the respective forms are required to be filed.

Calculation of Days (with example)

 

& ascertainment of Fees for each situation

Assuming that the date of Charge Creation is 1st December 2019 (which is required to be filed before 31st March 2020) and Company has filed it on 25th October 2020

New time line under MCA Circular (Situation 1)

No of days before relaxation 90
Plus: Exempted days (1st March till 30th September 2020) Nil
Plus: date of filing (no of days after 1st October 2020) 25
Total No of Days taken for filing 115

This will be treated as within the original limit of 120 days

Assuming that the date of Charge Creation is 1st April 2020 (which is required to be filed before 27th July 2020) and Company has filed it on 25th October 2020

New time line under MCA Circular (Situation 1)

No of days before relaxation NIL
Plus: Exempted days (1st March till 30th September 2020) Nil
Plus: date of filing (no of days after 1st October 2020) 25
Total No of Days taken for filing 25

This will be treated as within the original limit of 120 days

Scheme not applicable to §  Forms already filed before 17 June 2020

§  Time limit of filing of the forms has already expired before 01 March 2020

§  Filing of e-Form CHG-4 (satisfaction of charges)

Disclaimer: The views are expressed based on authors’ personal interpretation and for academic purpose only.

Author Bio

Qualification: CS
Company: Sandeep P Parekh & Co
Location: Navi Mumbai, Maharashtra, IN
Member Since: 08 Oct 2019 | Total Posts: 2
CS Sandeep Parekh is a Fellow Company Secretary and founder of SPPC in to practice over 13 years. His expertise lies in Company Law, Secretarial Audit, FEMA, LODR, LLP, Legal Drafting of SHA, SPA etc, Legal Opinion, Business and Legal Advisory on Corporate Law and other areas of Corporate Laws, NCL View Full Profile

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