Charge Creation
This query is : Resolved
Praveen Kanungo
(Querist)
05 June 2010
Hi Everybody. My question is can a Company create a charge on future assets i.e. assets yet to be acquired by the Company?
05 June 2010
AGREE. WITHOUT OWNING ASSETS YOU CANT CREATE CHARGE AGAINST IT.
Praveen Kanungo
(Querist)
05 June 2010
Thnxs Experts. The Bank has executed the following documents:
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
Praveen Kanungo
(Querist)
05 June 2010
Thnxs Experts. The Bank has executed the following documents:
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
05 June 2010
Agree with the opinion of the above experts. Only in case of rotating assets, future liability can be created. Not offices etc.
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