Section 77 talks about the duty to register charges. Sub-section 1 of section 77 states that the charge can be created within or outside Of India and on its property or assets or on any of its undertaking, whether tangible or otherwise and situated in or outside India. The signature of the company should be present on all the particulars relating to the charge which is being filed with the registrar of the company. Some e-forms need to be filed for the same purpose. CHG-1 deals with the registration of creating or modifying the charge, this charge does not include debentures. CHG- 2 Provides for a certificate of registration. CHG- 3 provides for a certificate of modification of charge. CHG-4 deals with imitation of the satisfaction of the registrar. CHG-5 deals with a memorandum of satisfaction to the registrar. The notice of cessation or appointment of the manager or receiver is provided through CHG-6. CHG-7 has the purpose to register charge. The application is filed with the central government for the condonation of delay, it is given through CHG-8. Like CHG-1 CHG-9 also deals with creating or modifying the charge however, it is for debentures and rectification.
Section 180 deals with the procedure for registration of charge. It talks about how before creating the charge the company should pass a special resolution that authorizes the board of directors to borrow funds.
The company will need to file a form MGT- 14 of the Companies rules 2014. This form should be filed after passing the resolution to the registrar. 30 days given and the charge should be filed with the Registrar within these days. the form for registration of creating or modifying the charge should have some attachments such as a certified copy as evidence of creating or modifying the charge. The particulars of any other charge holders should also be attached. If there is an acquisition of property then the evidence relating to the modification or creation should also be attached.
As per the Annexure B of the company rules (Registration office and fees), 2014 the payment of the fees has to be made online. In case the charge is not registered within 30 days an additional 300 days are given after paying additional fees under annexure of the Companies rules 2014, only if there was an unavoidable reason. If there is any delay in applying it has to be signed by the director and secretary, So, that such filing does not affect the rights of creditors of the company.
Once the charges are registered, a certificate of registration is issued by the registrar and Within 30 days from the date of the payment, the company will intimate today registrar in the form number CHG – 4. Certificate of registration of satisfaction of charges will be obtained by the registrar and if there is any creation, satisfaction, modification of charges one can fill the form number CHG- 7 and This will include all the particulars of the charges that are registered the register.
Authentication will be done by the director or the secretary of the company or by any other person who is authorized by the board and for 8 years it will be preserved. If the satisfaction of charges is not filed within 30 days then one can apply for the condonation of delay. Begin 300 days an instrument creating a charge should be filed and if it is not filed then it has to be filed again with an application for condonation of delay.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
