AS PER COMPANIES ACT, 2013

Section 2(16) of the Companies Act, 2013 defines charges so as to mean an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage.

 —A Company creating a charge, shall, register the particulars of the said charge with the ROC within 30 days of its creation in Form CHG-1.

—This charge could be:

1. a) on its property or assets or
2. b) any of its undertakings
3. c) whether tangible or otherwise

—Situated in or outside India

—Signed by both the Companies and the charge-holder

—Together with the instruments creating the charge

—Creating or modifying the charge shall be filled in Form CHG-1 (for other than Debentures) or Form No. CHG-9 (for debentures including rectification) with the registrar.

—Where a charge is registered with the Registrar under sub-section (1) of section 77 or section 78, he shall issue a certificate of registration of such charge in Form No CHG-2.

—Where the particulars of modification of charge is registered under section 79, the Registrar shall issue a certificate of modification of charge in Form CHG-3.

—In the previous slide, we mentioned 30 days (Section 77(1))

—ROC may on application in Form CHG-10 by the company, allow this registration within 300 days (30+270), on payment of additional fees

—This application shall be supported by a declaration from the company by its secretary or director that such not adversely affect rights of any other creditors of the company

—If not within 300 days, company to seek extension of time from the CG; applicable Section 87 in Form CHG-8

—Where the instrument creating or modifying a charge is not filed within a period of 300 Days from the date of its creation or modification the Registrar shall not register the same unless the delay is condoned by the Central Government.

—Where the instrument satisfaction of the charge is not filed within 30 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.

—The application for condonation of delay shall be filed with the Central Government in Form No.CHG-8 along with the fee. [ By Notification F. No. 1/6/2014-CL.V Dated: 21-5-2014 THIS POWER HAS BEEN DELEGATED TO REGIONAL DIRECTOR)

—The order passed by the Central Government under sub-section (1) of section 87 of the Act shall be required to be filed with the Registrar in Form No.INC.28.

—CHG-1 (creating or modifying the charge (for other than Debentures).

—CHG-2 (certificate of registration)

—CHG-3 (certificate of modification of charge)

—CHG-4 (intimation of the satisfaction to the Registrar)

—CHG-5 (memorandum of satisfaction to the Registrar)

—CHG-6 (notice of appointment or cessation of receiver or manager)

—CHG-7 (register of charges)

—CHG-8 (application for condonation of delay shall be filed with the          Central Government)

—CHG-9 (creating or modifying the charge in (for debentures  including rectification)

—CHG-10 (application for delay to the Registrar)

 In case eForm is filed by the company or the Charge-holder beyond 300 days from the date of charge creation or modification (i.e. where condonation of delay is required), then the application to Central Government for condonation of delay is required to be filed in eForm CHG-8 after filing this eForm and this eForm will be processed by the RoC office after order of Central Government for approval for condonation of delay in eForm INC.28 has been filed.