Charge on immoveable property.

This query is : Resolved

PUNEET GOYAL (Querist)
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15 December 2011 Dear Expert,

Is it necessary that for registration of charge property should be in the name of company? If the property is in the name of director of the company, in that case also registration of charge is required or not?

Please reply ASAP alongwith relevant provisions etc.

Thanks in advance.

Guest

Guest (Expert)

15 December 2011 Hi Puneet Ji,

It is very much required to register charge even if loan is taken on the property of director since company has taken loan or
borrowed funds.

Regards, Neha

PUNEET GOYAL

PUNEET GOYAL (Querist)
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15 December 2011 Thanks for your prompt reply.

please support the same with relevant provision, notification , case law etc.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 December 2011 If the underlying property is in the name of a Director, the company need not create charge on it,in view of the wording in section 125(1) which I quote " so far as any security on the company's property".

Guest

Guest (Expert)

16 December 2011 Mr. Warrier,

I have handled a case in which loan was taken in one company secured on the property of director, then ROC and bank asked us to file form 8 for the same.

As a general practice I feel charge should be filed.

Regards, Neha

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 December 2011 Mumbai High court's view in the case of Maharashtra State Financial Corporation V Masvi and Co P Ltd reported in 76 company cases 168 is section 125 can apply only to the extent the deed creates a charge on the assets of the company.
Neha Ji didn't you cite the case before the ROC and Bank Officials.

Message likes : 1 times

Guest

Guest (Expert)

16 December 2011 No, I did not.
Since bank forced us to file we just filed.

Well thanks for the information and case law.
Will exercise due care in future.