registration of charge to protect creditor
charge
application for registration of charge
date of notice of charge
duty to register charge
satisfaction of charge
meaning od charge
punishment/rectification in register of charges
charge
created on assets/property/area(undertaking)
cretaed on security for repayment of loan
interest/lien(right to take possession and sell it if loan nt repaid)
includes mortgage( immovable prop. as security for repayment of loan)
types
fixed-identity of asest will not change
floating-identity of asest will change
fixed-eg, car, L&B
charge on specific assets of borrowing co.
asets identified at time of creation of charge
charge fixed+ cant sell assets
sold only with permission of chrageholder
fixed charge vacated- money fully paid
floating charge-nature changing-eg.stock
created on assets- fluctuating/changing nature/eg, RM, stock,debtors
assets dealth with oridinary course of business
buyer gets it free of charge
at liquidation- floating becomes fixed for all assets
crystallisation of floating charge- when becomes fixed
modification of charge
duty to register charge
every co. to register with ROC
assets in or o/s india
movable/immovable
tangible/others
non registration consequemnces?- both current and future creditor will be affected. so that loan is not taken mre than once on same prop/stock. charge will become void among liquidators/other creditors but debt remains payable. but security is lost. liquidation meeting- secured creditors(banks..) unseured cres-newspaper vendor, milkman.. show registration charge certificate by ROC. 1st secured then unsecured crs.
particulars of charge
copy of instrument creating charge
verification
subject to change
modification-change terms/consitions- any variation-rate change- charge to be registered
earlier vacated/ new charge by amalgamating co.
application by chargeholder
certification for registration of chane/modification
consequences of non registration of charge
examples for modification of charge
pari pasu(equal)- 1st charge-same property again, 2nd charge. pune aambey valley prop 15acres, loan from bank1=10cr, 2nd bank=5cr, same prop, 1st bank1, bank2 will get their money in propertion when land sold.
change in rate of interest(fixed charge)
agreement for increase/decrease limits eg, o/d (1cr to 2cr/ 1cr to 50lacs)
change in repayment of loans(term loan-long term loans)
vary terms/conditions of existing charge
partial release of charge on assets eg, 3 assets charged 50% - 1 sell
certifiacate by registrar
conclusive evidence
no charge taken into assets
charge to become void agt liquidators
secured creditor losses his security/priority
if co. fails, then charge registration by chargeholder-recover expenses fr co.
co. give reasons why not to be registered
registrar not allow registration
if objection received
regsuter in 14D
if no objection fr co received
registrar give notice to co.
chargeholder apply to register
co fails in 30D
reguster charge
registration of charge= deemed notice
verify if assets under charge
suffers loss, cant claim later
person ereciving assets to give notice
creation of chrage not important, registraryion of charge very important+creates priority
public document
subsequent charge
power of registrar to note satisfaction
intimation of appointment
satisfaction of charge-payment/discharge of liab./discharge of security by partial discharge but debt still there.
registrar send notice to chargeholder
cause is shown
if no intimation, in 30D on fees
if no cause, registrar shall register
co give intimation to registrar in 30D
notice to co.+regstration +copy of oredr in 30D from order/appt.
person appts.
appt. order to manage property s.t. change
rectification by CG
ommission in giving intimation+registrartion
ommission/ mis-statmenet of any particulars to registrar
stuck to ground,immivable=mortgage
movable=pledge
individual has unlimited liab. hence all personal asssets can also be sold
but co. bs is its assets liab. should know if any assets there is a charge
only additional charge(difference) to be registered. original 1cr+ new 3cr= total 4cr
be earky, register within time. 1st/2nd, whoever registers 1st, his charge will be priority.