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CAN SECOND CHARGE BE REGISTERED WITHOUT FIRST CHARGE

Radhika (CA Practice ) (87 Points)

24 July 2008

CAN SECOND CHARGE CAN BE REGISTERED WITHOUT REGISTERING FIRST CHARGE ON ANY PROPERTY" CAN I GET ANSEWR ?

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8 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 25 July 2008

Yes, but why was the first charge not registered?

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Radhika (CA Practice ) (87 Points)
Replied 25 July 2008

Originally posted by :S.Srinivasaraghavan
"	Yes, but why was the first charge not registered?	"

WE HAVE GIVEN FIRST CHARGE TO BANK ON ONE PROPERTY AND SECOND CHARGE ON ANOTHER PROPERTY. NOW BANK INSISTING TO CREATE SECOND CHARGE ON ANOTHER PROPERTY.

Radhika (CA Practice ) (87 Points)
Replied 25 July 2008

THANKS MR S SRINIVASRAGHVAN.

Mahesh Paryani (Chartered Accountant) (365 Points)
Replied 27 July 2008

Originally posted by :Radhika
"	CAN SECOND CHARGE CAN BE REGISTERED WITHOUT REGISTERING FIRST CHARGE ON ANY PROPERTY" CAN I GET ANSEWR ?	"

totally zaped with the answers of this query

first of all you have to compulsory creat a charge as per company law

for some one like a bank missing out such a basic requirement is a question to think of...........

answer is that when you register a document with a required authority then only it called a charge if you dont register a charge you will have the right if the entity is insolvent as a normal creditor without creating a first charge how can you register a second charge if you do so then that second charge would have a priority over the first charge you have created then what is the use of creating the first charge?if you can elobrate your question with further details then you would have a much better answer....

regards

Radhika (CA Practice ) (87 Points)
Replied 28 July 2008

Originally posted by :mahesh

Dear Friend,

AS PER SANCTION LETTER OF BANK WE HAVE PLEDG PROPERTY AT ONE CITY. AND SECOND CHARGE ON PROPERTY AT DIFFERENT CITY. SIMILARILY WE ARE GOING TO HAVE LOAN WHICH ARE IN PROCESS AND GOING TO PLEDGE SECOND PROPERTY AS FIRST CHARGE AND SECOND CHARGE ON FIRST PROPERTY.

Originally posted by :Radhika

"
CAN SECOND CHARGE CAN BE REGISTERED WITHOUT REGISTERING FIRST CHARGE ON ANY PROPERTY"

CAN I GET ANSEWR ?
"

totally zaped with the answers of this query
first of all you have to compulsory creat a charge as per company law
for some one like a bank missing out such a basic requirement is a question to think of...........
answer is that when you register a document with a required authority then only it called a charge if you dont register a charge you will have the right if the entity is insolvent as a normal creditor without creating a first charge how can you register a second charge if you do so then that second charge would have a priority over the first charge you have created then what is the use of creating the first charge?if you can elobrate your question with further details then you would have a much better answer....
regards

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S Kedarnath (91 Points)
Replied 31 July 2008

The duty of the Registrar of Companies is to register any document that is required to be registered under the Companies Act, 1956. A document consisting of a Second Charge may be registered by the Registrar if the document is otherwise in order.

If the charge you are referred by you is a modification then the details of the previous / original charge are to be incorporated failing which the document will not be registered. In case of a second charge the first charge holder has to sede the second charge in favour of the person in whose favour the second charge is being registered. The very fact that the first charge is not registered will make the first charge holder not to part with the letter of ceding in which case the second charge cannot be registered.

(Guest)

Originally posted by :Guest
"	The duty of the Registrar of Companies is to register any document that is required to be registered under the Companies Act, 1956. A document consisting of a Second Charge may be registered by the Registrar if the document is otherwise in order. If the charge you are referred by you is a modification then the details of the previous / original charge are to be incorporated failing which the document will not be registered. In case of a second charge the first charge holder has to sede the second charge in favour of the person in whose favour the second charge is being registered. The very fact that the first charge is not registered will make the first charge holder not to part with the letter of ceding in which case the second charge cannot be registered.	"

(Guest)

Originally posted by :Guest
"	The duty of the Registrar of Companies is to register any document that is required to be registered under the Companies Act, 1956. A document consisting of a Second Charge may be registered by the Registrar if the document is otherwise in order. If the charge you are referred by you is a modification then the details of the previous / original charge are to be incorporated failing which the document will not be registered. In case of a second charge the first charge holder has to sede the second charge in favour of the person in whose favour the second charge is being registered. The very fact that the first charge is not registered will make the first charge holder not to part with the letter of ceding in which case the second charge cannot be registered.	"