Form 8 in case of car loan

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CA Manish Jain (Querist)
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25 May 2013 Dear Sir,
can you provide the fillup form 8 of any co whoes take car loan for his employee and charge registered with the roc.
thanks in advance
please reply soon

Ganeshbabu K

Ganeshbabu K (Expert)
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25 May 2013 http://www.mca.gov.in/MCA21/Download_eForm_choose.html

DOWNLOAD E-FORM FROM MCA21 PORTAL .

But filing of Form-8 for car loan is not mandatory.
however if bank asks to create charge, we can file form 8.

Ganeshbabu K

Ganeshbabu K (Expert)
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26 May 2013 Sir we took car loan for 1 crore jaguar car but no charge created,as below
Please refer 125(4)
U/s125(4)(e) of the Companies Act, 1956 a charge not being a pledge on movable property of company is required to be registered under the said Act. In the instant case, the car has been hypothecated to the bank.

In a case law Ideal Bank Ltd.(in liq.) vs. Pride of India Pictures Ltd. (in liq.) it was held that hypothecation amounts to pledge though constructive and hence registration of charge is not required.

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Ganeshbabu K

Ganeshbabu K (Expert)
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26 May 2013 reply to your comment on my profile

You can refer help form for form 8

dear sir,
refer sec 125(4) which has given mandatory situations where charge is to be created

so as per 125(e) charge not being a pledge is mandatory to create charge with roc

so please select not being pledge( if your car loan is comes not under pledge)

if ur car loan not in above catogary

select other and give reason for creation of charge

So please fill form accordingly..

You can select not being pledge as a general case under 125(4)
Note: i have not created charge in case of car loan.however if ur banker asks you can file form-8 with roc and submit it to bank for sanction.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 July 2013 If the financier insists then only you have to create the charge otherwise the finance is against the car and in RTO it is registered in the name of the financier and till the loan is re-paid it will not be transferred in the name of the company so no charge is required to be created.