Scheme for Relaxation of Time for Filing Forms Related to Creation or Modification of Charges Under the Companies Act, 2013

On account of the pandemic caused by the COVID-19, representations have been received in this Ministry, requesting that the timelines related to filing of certain charge related forms may be suitably relaxed so as to provide a window of compliance for the registration of charges. Under the Companies Fresh Start Scheme, 2020 (Since the Form related to charge and Form SH – 7 does not cover under the Company Fresh Filling Scheme 2020 issued by MCA) as laid out in the General Circular No. 12/2020, dated 30.03.2020, the benefit of waiver of additional fees was not extended to the charge related documents. Therefore, it has been suggested that some dispensation may be provided for filing of charge related documents as well.

In view of the above, the Central Government in exercise of its powers under section 460 read with section 4O3 of the Act and the Companies (Registration Offices and Fees) Rules, 2014 (Fees Rules) has decided to introduce a Scheme, namely “Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013” for the purpose of condoning the delay in filing certain forms related to creation/ modification of charges.

The scheme shall come into effect from the date of issue of this Circular I.e. June 17, 2020.

Applicability of this Scheme

The scheme shall be applicable in respect of Filing of Form No. CHG-1 and Form No. CHG-9 by a company or a charge holder, where the date of creation/modification of charge:

  • Is before 01.03.2020, but the timeline for filing such form had not expired under section 77 of the Act as on 01.03.2020, or
  • Falls on any date between 01.03.2020 to 30.09.2020 (both dates inclusive).

For Example.

If charge is created on January 25, 2020 the company has to register within 60 day (with Normal Fee) within 60 days after expiry of 60 days from the date of creation (Advalorem fee).

  • Date of Creation of Charge is January 10, 2020
  • Due date for registration of charge with Normal Fee is 60 Days From the date of creation. I.e March 11, 2020
  • Due date for registration of charge with Advalorem Fee is 60 Days After the expiry of 1st 60 day. I.e May 10, 2020

Since, this charge is created before March 01, 2020 but the timeline for filing such form had not expired under section 77 of the Act as on 10.05.2020. In the given case company is eligible to file under this scheme.

RELAXATION OF TIME:

  • If the charge is created before the March 01, 2020 and date of registration of charge is fall between March 01, 2020 to September 30, 2020. The first day after 29.02.2020 shall be reckoned as 01.10.2020 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.
  • If the charge is created between March 01, 2020 to 30 March 2020 – the period beginning from the date of creation/modification of charge to 30.09.2020 shall not be reckoned for the purpose of counting of days under section 77 or section 78 of the Act. In case, the form is not filed within such period, the first day after the date of creation/modification of charge shall be reckoned as 01.10.2020 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.

Non Applicability of this scheme

1. The forms i.e.CHG-1 and CHG-9 had already been filed before the date of issue of this Circular.

2. The timeline for filing the form has already expired under section 77 or section 78 of the Act prior to 01.03.2020.

3. The timeline for filing the form expires at a future date, despite exclusion of the time provided.

4. Filing of Form CHG-4 for satisfaction of charges.

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