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Form 8 urgent

Mayuri Lal (officer CS) (748 Points)

25 January 2011

Dear Members,

There is this Private Limited Compnay who is taking a loan of 50 lacs on the basis of counter indemnity and guartee of two people .. and the securiy mention in the document is FDR due 10 lacs. and in the agreement its witten than the company has deposited cash margin of rs. 10 lacs and handed over as security HIS fised deposit receipt -- dt-- duly dicharged..

Can anyone plz tell me Form 8 is requireed to be filed or not for the above loan taken???

Regards,

Mayuri Lal

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5 Replies

cs ashwini kumar (Company Secretary in Practice) (173 Points)
Replied 26 January 2011

A pledge of fixed deposit receipts with a bank for obtaining a loan does not require registration.[Sree Meenakshi Mills Ltd. v Registrar of Companies (1966) 36 Comp Cas 961 (Mad): AIR 1966 Mad 24.]. Accordingly, no need to file e-Form 8 for such charge creation.

Regards

CS ASHWINI KUMAR (csashwini1970 @ gmail.com)

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Nitin Grover (CS) (1228 Points)
Replied 26 January 2011

Dear Friend

in my views you should file Form 8 because Loan amount is 50 lacs & security amount is only 10 lacs.

In Case if loan / guarantee amount is equal to security then there is no need for example like Guarnatee in Sales Tax Department of Rs. 1 lakh

Regards

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 27 January 2011

A pledge of movable property will fall under the exception "not being a pledge on any movable property"" as specified in Section 125(4)(e) and hence no need to file Form 8.