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Charge filing

Kalpana Chauhan (Asst Manager-Secretarial and compliance ) (33 Points)

06 May 2010

Hi Friends ,

I have a small query , If a Company X ltd (public co ) is purchasing say 20 cars for its employees on loan , the vehicles would be hypothecated to the bank and will also be the assets of the company , which would mean that the loan is secured by hypothecation of compay assets . In such a scenario will the comapny have to file the charge details in form 8 with ROC .

Thanks in advance for all your help.

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10 Replies

vikash rathi (Chartered Accountant) (787 Points)
Replied 06 May 2010

yes company has to file charge detail in form no. 8 or 13

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CS Mayur Buha (Company Secretary) (238 Points)
Replied 07 May 2010

Mr. Vikash the form no. 13 for charge create for debenture issue not for hypothication.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 07 May 2010

Yes, form 8 is required to be filed within 30 days of the execution of documents for creating the charge.

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RITU BAJAJ (COMPANY SECRETARY) (158 Points)
Replied 07 May 2010

As far as I know no charge is created on vehicles. Wait for others views.

J. Manivannan (Advocate & IP) (242 Points)
Replied 07 May 2010

Dear All,

If bank or financial insitution (Charge Holder) insist to create a charge, then you should file form-8 along with deed of hypothecation within 30 days from the date of execution of the said deed.

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Nitin Grover (CS) (1228 Points)
Replied 07 May 2010

Dear Friend

Yes File Form 8 with in 30 days with specified Fee's then in next 30 days with late fee's.

After 60 days if u filled then u have to take order from CLB u/s 141.

So file it ASAP

Regards

pinkush (cs) (34 Points)
Replied 10 May 2010

yes charge creation is must even if bank does not insist coz its companies liability. i have created similar charge when the comapny has purchased 40 cars .

CS Jithesh (ACS,) (COMPANY SECRETARY ) (485 Points)
Replied 10 May 2010

Form 8 has to be filed as there is a hypothecation of companies assets, and the same shall be done within 30 days of the creation of charge. Once the charge is created the same has to be updated in Statutory Register of the company.

Regards

CS Jithesh