The COVID-19 pandemic has created major economic shifts in the global economy. Various big and small stakeholders as well different entities related to the corporate world have faced huge losses due to the ongoing pandemic. Because of the hardships being faced by the people due to the emergence of the COVID-19 pandemic, the Ministry of Corporate Affairs (MCA) has allowed the relaxation of time to file forms related to the creation or modification of charges. Ministry of Corporate Affairs (MCA) issued a circular providing relaxation of time for filing forms related to the creation or modification of charges under the Companies Act, 2013.

Earlier, terms of Sections 77 and 78 of the Companies Act, 2013 mandates the organization to file forms related to the creation or modification of charge. According to the provisions of Section 77, it is the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether physical or other and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments.

Section 78 of the Companies Act, 2013 states that if a company fails to register the charge within thirty days without detriment to its responsibility. The person from the organization who is responsible for creating the charge can apply to the Registrar for registration of the charge along with the instrument created for the charge. It must be noted that the registration is effected on the application of the person responsible for creating the charge, that person will be allowed to recover the cost of any fees or additional fees paid to the Registrar by the responsible person.

With the new circular, the Ministry of Corporate Affairs (MCA) is granting relaxation of time to Companies or charge holders for condoning the delay in filing specific forms related to the creation or modification of charges according to section 77 of the Companies Act, 2013. The new circular is applicable in respect of filing of form no. CHG-1 and CHG-9 by a company or a charge holder of an organisation, as per the date of creation or modification of charge. This scheme does not apply to form no. CHG-4, which states the Particulars for the satisfaction of charge and form no. CHG-6, which talks about the Notice of appointment or cessation of receiver or Manager. The relaxation in time is provided if the date of creation or modification of charge was before 1st April 2021 and the time limit of 120 days has not expired and where the date of creation or modification of charge is between 1st April 2021 and 31st May 2021 including both the dates. Circular also lists the applicability of the fee for creating and modifying the charges which are different as per the dates stated above.

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. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Consulting & Governance shall not be responsible for any errors caused due to human error or otherwise.