Unit - 18: Registration and satisfaction of Charges
Legal & Regulatory Aspects of Banking - Registration and Satisfaction of charges Unit - 18 : Registration and Satisfaction of Charges CHARGE : Any form of security for debt, unless the word is used otherwise.
TYPES OF CHARGES: Charges as per Companies Act , 1956 can be classifised into two ways : a) Fixed Charge ( Specific charge ) When a Particular or specific property is given as a security for loan , fixed charge is created . b) Floating Charge This is general not specific .
PROCEDURE FOR REGISTRATION OF CHARGE : Section 77 (1) of Companies Act, 1956 provides that all the particulars of a charge created by the company shall be filed with ROC together with an instrument , creating charge , for registration within 30 days of creation of charge . The procedure for registration is provided under the Rule 6 of the Companies ( Central Government 's ) General Rules and Forms .
NON REGISTRATION OF CHARGES : Section 78 Provides that the charge created over the properties , if not registered or in case the company fails to register such charge within the prescribed time period then the person in whose favor such charge has been created may apply to the registrar for registration along with relevant charge creating instrument . Such application has to be made within 14 Days after giving notice in this regard to company.
PROVISIONS OF LAW RELATING TO REGISTRATION OF CHARGES : Chapter VI comprising of Sections 77 to 87 of Companies Act , 2013 : Section 77, 77(1), 77(2), 78-87, 79 - 87.