TOPIC 48: QUICK REFERENCE TO “Charges”
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Quick Reference about "Charges" :-
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Legal Provision:-
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Section 2 (16) , section 77 to 87 of Companies Act, 2013.
Companies (Registration of Charges) Rules, 2014.
Section 100 of Transfer of Property Act, 1882.
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Points:-
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1. Charge is the Right or Interest created on the Property.
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2. Charges can be Fixed or Floating.
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3. Charge may be created by Act of Parties or operation of law.
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4. Form CHG-1 (other than Debentures) and Form CHG-9 ( for Debentures) is used for creation or modification of Charges. It should be filed within 30 days.
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5. Form CHG-4 is require to file for satisfaction of charge.
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6. Form CHG-7 deals with Register of charges maintained by the Company.
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7. If Charge is not registered then Unregistered charge holder becomes an Unsecured creditor.
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8. Crystallisation of Charge means Conversion of Floating Charge into Fixed Charge.
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9. If Form CHG-1 is not filed within 30 days then Registrar allows to file the form within 300 days and Application for delay should be in the Form CHG-10 . If it is not filed within 300 days then application should be made in Form CHG-8.
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10 . The Company is also punishable with fine of ₹ 1 lakh and maximum upto ₹ 10 lakh for Non-Registration of Charge.
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11. Charge is different from mortgage.
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Regards
ACA SOURAV BAGARIA