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ABCAUS Excel for Chartered Accountants

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Chartered Accountants

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Chapter VI of The Companies Act,2013 (Act) deals with “Registration of Charges”. Further The Companies (Registration of Charges) Rules, 2014 (Rules) also lays down the various rules governing registration of charges.

 

Duty to Register a Charge:

As per section 77 of the Act, itis duty of every company creating a charge within or outside India on its property assets or any of its undertakings, whether tangible or not, toregister the particulars of charge with the RoC concerned.

 

Time Limit for Registration of a Charge:

Time limit prescribed by both Act and Rules for registration is thirty days from creation/modification of a charge.

 

Condonation of delay by Registrar :

The Registrar may, on being satisfied that the company had sufficient cause for not filing the particulars and instrument of charge, ifany, within a period of thirty days of the date of creation of the charge,allow the registration of the same after thirty days but within a period of three hundred days of the date of such creation of charge or modification of charge on payment of additional fee.

 

Condonation of Delay by Central Government:

Where the instrument creating or modifying a charge is not filed within a period of three hundred days from the date of its creation (including acquisition of a property subject to a charge) or modification and where the satisfaction of the charge is not filed within thirty days from the date on which such payment of satisfaction, the Registrar shall not register the same unless the delay is condoned by the Central Government.

 

Form to be filed for Registration of Creation or Modification of aCharge:

For registration of charge the particulars of the charge together with a copy of the instrument, if any, creating or modifying the charge in FormNo.CHG-1 (for other than Debentures) or Form No.CHG-9 (for debentures including rectification), as the case may be.

 

A company shall within a period of thirty days from the date of the payment or satisfaction in full of any charge registered under Chapter VI, give intimation of the same to the Registrar in FormNo.CHG-4 along with the fee

 

The application for delay (not exceeding 300 days) shall be madein Form No.CHG-10 and supported by a declaration from the company signed by its secretary or director that such belated filing shall not adversely affect rights of any other intervening creditors of the company.

 

The application for condonation of delay by Central Government shall be filed with the Central Government in FormNo.CHG-8 along with the fee.

 

Fee for Registration of a Charge:

The table for fee for filing acharge document is as under:

 

Sl no

Period of delays

Forms including Charge Documents

01

upto 15 days (sections 93,139 and 157)

One time

02

More than 15 days and upto 30 days (Sections 93, 139 and 157) and upto 30 days in remaining forms.

2 times of normal filing fees

03

More than 30 days and upto 60 days

4 times of normal filing fees

04

More than 60 days and upto 90 days

6 times of normal filing fees

05

More than 90 days and upto 180 days

10 times of normal filing fees

06

More than 180 days and upto 270 days

12 times of normal filing fees

For delay beyond 270 days, the second proviso to sub-section (1) of  section 403 provides that any document may also be filed  after the delay of 270 days on payment of fee and additional fee which may be prescribed. Please note that scale of additional fee for delays beyond 300 days is yet to be  prescribed

 

Register of charges to be maintained by Company:

(1)      Every company shall keep at its registered office a register of charges in Form No. CHG.7 and enter therein particulars of all the charges registered with the Registrar on any of the property, assets or undertaking of the company and the particularsof any property acquired subject to a charge as well as particulars of any modification of a charge and satisfaction of charge.

(2)      The entries in the register of charges maintained by the company shall be made forthwith after the creation, modification or satisfaction of charge, as the case may be.

(3)      Entries in the register shall be authenticated by a director or the secretary of the company or anyother person authorised by the Board for the purpose.

(4)      The register of charges shall be preserved permanently and the instrument creating a charge or modification thereon shall be preserved for a period of eight years from the date of satisfaction of charge by thecompany.

 

Register of Charge to be Kept by Registrar

Section 81 requires that Registrar shall keep a register of charge in respect of each company. The particulars of charges maintained on the Ministry of Corporate Affairs portal (www.mca.gov.in/MCA21) shall be deemed to be the register of charges for the purposes of section 81 of the Act and any person can inspect it on payment of inspection fee.

 

Rectification in Charge Register by Central Government :

Any order passed by the Central Government under sub-section (1) of section 87 of the Act shall be required tobe filed with the Registrar in Form No.INC.28 along with the fee as per the conditions stipulated in the said order.

 

Punishment for contravention:

As per section 86, 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.

 

Download - The Companies Act,2013 Click Here >>

Download - The Companies (Registration of Charges) Rules, 2014 Click Here >>

Download - The Companies (Registration of Charges) Rules, 2017 Click Here >>

 

Newe E-forms for Charge Management available on MCA Download Section as on  28/04/2014 are as under:

 

Description

e-Form with Instruction kit

Application for registration of creation, modification of charge (other than those related to debentures)

Form CHG-1

Particulars for satisfaction of charge thereof

Form CHG-4

Notice of appointment or cessation of receiver or manager

Form CHG-6

Application for registration of creation or modification of charge for debentures or rectification of particulars filed in respect of creation or modification of charge for debentures

Form CHG-9

Consolidation/Division/Increase in Share Capital or Members

Form SH-7

Details of persons/directors/charged/specified

Form GNL-3

 

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Companies Act 2013 - Registration and Satisfaction of Charge with Registrar of Companies (ROC)

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