Charge creation, modification and satisfaction

Charge: ― Section 2(16) of the Companies Act, 2013,defines the term Charge means 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;

It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation:

Creation and Modification  of Charge:

A charge created by a company is required to be registered with the Registrar within thirty days of its creation in such form and on payment of such fees as may be prescribed. According to Companies (Registration of Charges) Rules, 2014 e-forms prescribed for the purpose of creating or modifying the charge is Form No.CHG-1 (for other than Debentures) or Form No.CHG-9 (for debentures including rectification).

Condonation of delay by Registrar:

• The Registrar may on an application by the company allow registration of charge within three hundred days of creation or modification of charge on payment of additional fee.
• The Registrar may, on being satisfied that the company had sufficient cause for not filing the particulars and instrument of charge, if any, 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. The application for delay shall be made in 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

Once Charge is created and registered a certificate of registration in CHG- 2 (for creation of charge) and in CHG 3 (for modification of charge) is issued by concerned ROC. Register of Charge to be maintained by Company in CHG 7.

Satisfaction of Charge: According to section 82 read with the Rules, the company shall give intimation to the Registrar of the payment or satisfaction in full of any charge within a period of thirty days from the date of such payment or satisfaction in Form No.CHG-4 along with the fee.  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.

Certificate of registration of satisfaction of charge: Where the Registrar enters a memorandum of satisfaction of charge in full in pursuance of section 82 or 83, he shall issue a certificate of registration of satisfaction of charge in Form No.CHG-5.

LIST OF E-FILLING UNDER CHARGE MANAGEMENT