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creation of charge

24 November 2018

if within 60 days charge is not filed. is it the same procedure of Section 87 to file within a further period
60 days . or there is any other procedure

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2 Replies

Anjali Kolse (103 Points)
Replied 30 November 2018

according to sec.78 of co.amendmend bill 2017, and now applicable.
primary duty to create a by creator within 30 days if not by creator then charge holder after expiry of such period.

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Shrikant (Associate) (350 Points)
Replied 03 December 2018

As per section 78 of the Companies Act, 2013 read with recent amendments (Companies Amendment Act, 2017 and Companies Amendment Ordinance, 2018), Company is required (duty) to file a form for charge creation within 30 days of the date of charge creation.

However, if a company is not able to file form within the said period, it can make an application ROC and then ROC can allow company to file charge:

a. in case of charges created before the commencement of the Companies (Amendment) Ordinance, 2018, within a period of 300 days of such creation

b. in case of charges created on or after the commencement of the Companies (Amendment) Ordinance, 2018, then within 60 days of the charge creation.

Now even a company could not register (file) a form for charge creation within period specified above in (a) and (b) then ,

(i) For point no (a) - the registration of the charge shall be made within six months from the date of commencement of the Companies (Amendment) Ordinance, 2018, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies;

(b) For point no (a) - the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such advalorem fees as may be prescribed.

The above point nos (a) has provided with a view to provide relaxation to companies who can apply to ROC so as to file the charges within period of 300 days for charges created before the commencement of the Companies (Amendment) Ordinance, 2018.

he above point nos (b) has provided with a view to provide relaxation to companies who can apply to ROC so as to file the charges within period of 60 days for charges created after the commencement of the Companies (Amendment) Ordinance, 2018.

This section has been recently amended vide Companies (Amendment) Ordinance, 2018, so kindly refer to the revised section for your reference. Thank You.

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