Borrowing funds is an important source for a company to raise capital for financing large-scale projects and expanding its business. Corporate borrowings involve loans obtained by a company by way of creating a charge on its assets as security to the lender company.
As defined in the Companies Act, 2013, (“Act”) “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. The Act prescribes for registration of charges with the Registrar of Companies.
Section-77 imposes a duty primarily on the company creating charge, to register the particulars of charge with ROC. The particulars of charge shall be filed in e-Form CHG-1 (for other than Debentures) or e-Form No.CHG-9 (for debentures including rectification) within a period of 30 days of the date of creation of charge along with the fee. The form shall be duly signed by the company and the charge holder.
Satisfaction/Payment of Charge:
A company shall give intimation to Registrar in e-form CHG-4, of the payment or satisfaction in full of any charge registered under this Chapter within a period of 30 days from the date of such payment or satisfaction.
The Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period of 300 days of such payment or satisfaction on payment of prescribed additional fees.
