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What is Charge?

As per 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.

Section 77 of Companies Act, 2013, deals with Registration of Charge

Any company creating charge should register the particulars with concerned the RoC within 30 days of such creation.

Types of Charge:

This charge could be either Fixed or Floating:

On its property or assets or
Any of its undertakings
Whether  tangible or otherwise

Situated in or outside India.

Section 82: Satisfaction of Charge

If charge is satisfied , it shall be informed to RoC by filling eForm CHG-4

> If e-form CHG-4 is filed within 30 days of such satisfaction then only Normal Fees would be levied.

> If e-form CHG-4 is filed within upto 300 (30+270) days of such satisfaction then Normal Fees and Additional Fees shall be levied.

>If e-form is not filled upto 300 days of such satisfaction then Normal Fees, Additional Fees as well as Condonation Fees.

Punishment for Contravention.

(1) If any company contravenes any provision of this Chapter, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.

(2) If any person wilfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.

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