We are in the process of filing form 8 for modification of charge.
Suppose,
1. Our Company has availed a Term Loan of Rs. 120 Crores from Punjab National Bank and created first pari passu charge on movable fixed assets by deed of hypothecation dated 30.06.2009.
2. Now, we have executed a Joint Deed of Hypothecation dated 25.10.2010 for creating second pari passu charge on movable fixed assets in favour of the Working Capital Lenders and for creating second pari passu charge on Current Assets in favour of the Term Lenders.
3. We are in the process of filing Form 8 for modification of charge created in favour of PNB as mentioned in point 1 above. the details of the modification will be like the Term Loan of Rs. 120 Crores is now further secured by way of second pari passu charge on the Current Assets of the Borrower.
4. If we notice the statement mentioned in bold fonts after Point 4 in Form 8, it is mentioned that in case of modification, the particulars should be mentioned as they stand adter the modification.
5. Now, my query is that in Point 6 of the Form 8 for modification whether we should select only the Book debts or both Book debts and movable property(not being pledge)?????
6. In my opinion, both the options should be selected because after the modification, the Term Loan of PNB will be secured by first pari passu charge on movable fixed assets and second pasi passu charge on the Current Assets but my cs is of the opinion that only book debts should be selected......kindly help in this matter as this is very much urgent!!!!!
Views of eminent experts are welcome please ........
12 November 2010
The words used in para 3 as well as para 6 is "current assets". If it is so in the joint hypothecation deed dated 25/10/2010 also, as per my understanding, in column 6 (a) of e-form 8 book debts and movable property (not being pledge) has to be marked since current assets includes the later item also.
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