Chapter G Registration of Charge

Sec 77 to 87

Charge Sec 2116

An interest or lien created on the property or

asset of co or any of its undertaking or both

as security for repayment of loan and

a

including mortgage

Fixed charge us
floating charge

Fixed floating

charge on specific Charge on assets which

asset of
borrowing
co are of
fluctuating nature

Example Land A bid Example Raw material

Office premises etc stock in trade debtor etc

Not allowed to sell But Permitted to use for

can use trading producingfinna

goods for sale

Vacated when money crystallization of floatin

repaid in full charge Enforce

security or co goes into

liquidation

Note In case of is
floating charge charge

not passed on to buyer

Section 77 Duty to register charge

1
Charge to be registered

Duty of every co creating a charge 87,318

to register particular of

charge together
with instrument
creating such charge signed

by co charge holder

In Form cha 1 for other than debenture

Form Ha 9 for debenture

within 30 days of creation thereof

in prescribed manner t fees

Borowy holder

1J loan payfarge

Asset Charge
Instrument

creating
Ha 1 9 charge

ROC
within 30

days


Note Following charges needs to be

registered

a
charge created within or outside India

lb charge created on prop asset in as India

C
charge on tangible intangible or financea

asset

Rule 3 Co Registration of charges Rule

verification of charge instrument

ptoperty situated outside property situated

India in India

I I

verified by certificate verified by certificate

issued under issued under

a I

company seat
Diles of co
b Hand of
H

Auth officer of N

charge holder

e Hand of other
person

than co interested in charge


Time limit for registration W EF 02 11 2018

Total 120 days

30 days 30dam 60 days

1 y p p
creation
of co.to Roc may grant Roc may

charge register extension grant

t t registration

Normal Additional H
fees fees Ad valorem

fees

Tpplicationforextension

IIIa

2 Issuance
of CoR confidence

Issue Cor co

Roc

Cha a 3 charge holder

H mottdification

Fresh

reg of charge

3 Consequence of non registration

t I
such charge shall not Chargenolder Nothing shall

be taken into account loses affect the

liquidator ther Priority obligation to

creditor repay the money

 Section 78 Application for registration charge
of

for chargeholder

co
registers charge within 30 days

yes N

I I
End at to Roc

may apply
with instrument

along

on such application

Roc 0s co

Rlyin
14 days
l

co its tf registers charge otherwise

Co sufficient cause
shows

y
why charge should not beregt Roc to register

I such charge

Roc shall not register I

such charge at entitled to recover

fees paid for such

registration from

company

Section 79 Sec 77 to apply in certain matters

Sec 77 shall also apply in

case of
Ci e file Ha 1 or 97

1
I

co a modification
acquiring poop

subject
to
charge of TAC of charge

It

Includes change in

TAC of underlying

borrowing

on registration of modification

Roc to issue Com in CHG 3

Sec so Registration to act as constructive note

where a is

charge
registered us 77

Any person acquiring such prop asset

shall be deemed to have notice
of such charge

from date of registration

Sec 82 co to report satisfaction of charge

On payment satisfaction of charge

 30dates 270 days

I p

Ha Y ROC May allow

Roc intimation within

30014s of
satisIpod
ied

Ha Y

301300days Notregd.if

INot eHa y is signed

by CH as well

Reply in ly days

showing cause why

satisfaction not to be recorded

No cause is shown cause is shown

H H

Record the same

Roc to register satisfaction inform co

Inform CHA 5

Preserve instrument 8 years

creating charges

from satisfaction

sec83_Power of Roc to record satisfaction

in absence of intimation

on evidence

being given to satisfaction of Roc tha

Debt has been paid 00 Property subject to charge

or satisfied has been released

M
I
Roc may su in payment release

register

Issue cha 5 to affected

parties in 30 days of entry

Not withstandingtefatthano intimation

is received from company

Sec su Intimation of appt of Receiver manager

If any person charge holder appoints a

to
manage property subject

receiver
manager

to charge byvirteof

order of a court power contained

in inst creating charge

I 1

co
within 30days of

Person
appt ROC

Notice CHA G

similar intimation to be given when such

receiver ceases to hold such appt

manager

Sect Punishment for contravention

contravention of this chapter

W E 5 lakh AND DID 50,000

Wilful liable us 447

Sec 87 Rectification by ca

med rear