Section 77 casta Duty to register charges, Tec with the ROC which is applicable to all the companies. The charge is required to be created within 30 days. Also, amendment or modification is required whenever there is a change .

 

 

Let us know the procedure for charge registration, modification & rectification: 

 

Procedure for Creation or Modification of charge:

     

 1) (a)  eForm CHG-1 for securities other than debentures

                      w/n 30 days from the date of creation/modification, alongwith-

                      i) Instrument creating the charge

                      ii) Instrument evidencing charge on property

                      iii) Particulars of all joint holders, if any.

               (b)  eForm CHG-9 for debentures

                     w/n 30 days from the date of creation/modification, alongwith-

                      i) Instrument modifying the charge

                      ii) CTC of the resolution authorizing the issue of debenture                                   series.

    

  2) On registration, RoC will issue certificate of registration of charge in             CHG-2.

  

    3) Entry in Register of Charge in Form CHG-7

 

Procedure for Condonation of delay by Registrar:

 

In case of delay of filing CHG-1 or CHG-9 after 30 days but within 300 days, the delay shall be mentioned in CHG-1 or CHG-9 as the case may be, alongwith-

• reasons for such delay

• Declaration from the company, that such belated filing will not affect the rights of any intervening creditors.

In case of filing of CHG-1/CHG-9 after expiry of 300 days, follow procedure for condonation of delay u/s 87.

 

 

Procedure for Rectification of charge

        1) eForm CHG-8 for application to CG(Power delegated to RD),                                       alongwith-

                a) Instrument creating/modifying/satisfying the charge

                b) Letter of Authorisation in case of Foreign Company

                c) BR authorising the filing of the application & authorisation

                d) Affidavit

                e) Confirmation from the charge holder

                f) Balance Sheet & Annual Return of FY for which rectification                          sought.

        2) eForm INC-28 w/n 30 days from the date of the receipt of RD’s                              order.

        3) eForm CHG-9 to RoC alongwith-

                a) Instrument containing details of the charge created/modified.

                b) Order of CG