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Charge Registration

Biraj (Proprietor) (103 Points)

27 August 2010

Hello Friends,

One of my client (Bank) forgot to register charge for loan given by them and that to before 3 years.

As per act we have to register charge within 30 days so anyone can help me for how to overcome this problem?

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7 Replies

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 27 August 2010

This is imply duty on the borrower company to register the charge with roc. If the same is not registered within the prescribed time then apply to CLB.

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vivek (CS) (751 Points)
Replied 27 August 2010

Now you will have to approach CLB:-

PETITION TO CLB FOR CONDONATION OF DELAY / RECTIFICATION OF CHARGE (Sec. 141)

If for any reason charge ( creation or modification ) could not be filed with ROC within 60 days ( 30 days under law + 30 days with additional fee under ROC power ) and in case of satisfaction 30 days, then the Company have to take the condonation of delay in filing such particulars with Company Law Board.

In case of rectification / corrections required in a registered charge, the same can be done only with the order of Company Law Board under this section.

The condonation petition under section 141 include the following :

· Petition containing details about company, charge delayed and reason thereof.

· Affidavit verifying the petition.

· Board Resolution authorising director to make affidavit.

· Memorandum of Appearance by professional appearing on behalf of the company.

The Company Law Board on hearing of the case or otherwise decide about the genuinity of the case on the ground of just and equitable will levy cost for such delay and condone the delay / rectification by issuing order in this behalf.

The Company will file the copy of order alongwith Form No. 21 with ROC and get the registration in this behalf.

Regards,

Biraj (Proprietor) (103 Points)
Replied 28 August 2010

Thanks Vivek and Hardik.

But i come to know yesterday that we can register charge letter with regular procedure after new notification or any other things//

do u aware about that? i didnt find any circular/noti, regarding that..

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 28 August 2010

you can register charge letter but you have to make pettion for condonation of delay in filling the charge.

vivek (CS) (751 Points)
Replied 28 August 2010

You might be saying about filing under CLSS, but upto my under standing your case is not covered under the same because of the below extract:-

(viii) Scheme not to apply to certain documents - (a) This Scheme shall not apply to the filing of documents for incorporation or establishment of place of business in India or where specific order for condonation of delay or prior approval under the provisions of the Companies Act, 1956 is to be obtained from the Company Law Board or the Central Government or Court or any other Competent Authority is required;

Others views solicited;

Regards,

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Biraj (Proprietor) (103 Points)
Replied 28 August 2010

Thanks Vivek, I read the same and get idea regarding this matter.

nandini mishra (individual) (592 Points)
Replied 29 August 2010

but what is the procedure when in a case company forget to register charge 10 years ago, now the charge has been satisfied and satisfaction of charge is pending for not registering the same with rac. is there any solution