{"id":24063,"date":"2026-05-11T11:46:46","date_gmt":"2026-05-11T11:46:46","guid":{"rendered":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/?p=24063"},"modified":"2026-05-11T11:48:57","modified_gmt":"2026-05-11T11:48:57","slug":"registration-of-charges-under-the-companies-act-2013","status":"publish","type":"post","link":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/","title":{"rendered":"Registration of Charges under the Companies Act, 2013"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"introduction-to-charge-under-companies-act-2013\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Charge refers to an interest or lien created on the assets or properties of a company as a security for repayment of loans or fulfilment of financial obligations. It acts as a safeguard for lenders and financial institutions by providing them with a legal right over the company\u2019s assets in the event of default.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #0c0c0c;color:#0c0c0c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #0c0c0c;color:#0c0c0c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Definition_of_Charges_under_Companies_Act_2013\" >Definition of Charges under Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Need_of_Creating_a_Charge_Over_the_Assets_of_a_Company\" >Need of Creating a Charge Over the Assets of a Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Security_for_Lenders_and_Financial_Institutions\" >Security for Lenders and Financial Institutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Facilitates_Access_to_Credit\" >Facilitates Access to Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Protection_Against_Default\" >Protection Against Default<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Prevention_of_Fraudulent_Dealings\" >Prevention of Fraudulent Dealings<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Essential_Elements_for_the_Creation_of_Charge\" >Essential Elements for the Creation of Charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Kinds_of_Charges\" >Kinds of Charges<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Fixed_Charge\" >Fixed Charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Floating_Charge\" >Floating Charge<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Legal_Provisions_Related_to_Charges_Under_the_Companies_Act_2013\" >Legal Provisions Related to Charges Under the Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_77_Duty_To_Register_Charges_Etc\" >Section 77. Duty To Register Charges, Etc.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Key_Highlights_of_Section_77\" >Key Highlights of Section 77<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_78_Application_For_Registration_Of_Charge\" >Section 78. Application For Registration Of Charge<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Important_Points_Under_Section_78\" >Important Points Under Section 78<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_80_Date_Of_Notice_Of_Charge\" >Section 80. Date Of Notice Of Charge<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Significance_Of_Section_80\" >Significance Of Section 80<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_81_Register_Of_Charges\" >Section 81. Register Of Charges<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Features_Of_Register_Of_Charges\" >Features Of Register Of Charges<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_82_Satisfaction_Of_Charges\" >Section 82. Satisfaction Of Charges<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Compliance_Requirements_Under_Section_82\" >Compliance Requirements Under Section 82<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Summary_Of_Sections_77_To_82\" >Summary Of Sections 77 To 82<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_83_Power_of_Registrar_to_Make_Entries_of_Satisfaction_and_Release_in_Absence_of_Intimation_From_Company\" >Section 83. Power of Registrar to Make Entries of Satisfaction and Release in Absence of Intimation From Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Key_Points_Under_Section_83\" >Key Points Under Section 83<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_85_Companys_Register_of_Charges\" >Section 85. Company\u2019s Register of Charges<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Requirements_Under_Section_85\" >Requirements Under Section 85<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Section_86_Punishment_for_Contravention\" >Section 86. Punishment for Contravention<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Penalties_Under_Section_86\" >Penalties Under Section 86<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Forms_Prescribed_Under_the_Companies_Registration_of_Charges_Rules_2014\" >Forms Prescribed Under the Companies (Registration of Charges) Rules, 2014<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/registration-of-charges-under-the-companies-act-2013\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>The provisions relating to charges are primarily contained in section 77 to 87 of the Companies Act, 2013 read with the Companies (Registration of Charges) Rules, 2014. These provisions lay down the procedure for creation, registration, modification, satisfaction, and rectification of charges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"definition-of-charges-under-companies-act-2013\"><span class=\"ez-toc-section\" id=\"Definition_of_Charges_under_Companies_Act_2013\"><\/span>Definition of Charges under Companies Act, 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In accordance with section 2(16) of the Companies Act, 2013 \u201ccharges\u201d can be defined as an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"need-for-creating-charge-over-assets-of-company\"><span class=\"ez-toc-section\" id=\"Need_of_Creating_a_Charge_Over_the_Assets_of_a_Company\"><\/span>Need of Creating a Charge Over the Assets of a Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The creation of a charge on the assets of a company is an essential mechanism under the corporate law framework of the Companies Act, 2013 particularly in relation to secured borrowing. A charge provides legal security to lenders by creating an interest over the assets or properties of the company in respect of loan granted to it.<\/p>\n\n\n\n<p>The need for creation of a charge arises due to the following reasons:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"security-for-lenders-and-financial-institutions\"><span class=\"ez-toc-section\" id=\"Security_for_Lenders_and_Financial_Institutions\"><\/span>Security for Lenders and Financial Institutions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Financial Institutions and banks generally require security before advancing such funds. By creating a charge over specific or general assets of the company, the lender obtains a legal right over those assets in case the company defaults in repayment. This reduces the financial risk of the lender and enhances the company\u2019s credibility for obtaining finance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"facilitates-access-to-credit\"><span class=\"ez-toc-section\" id=\"Facilitates_Access_to_Credit\"><\/span>Facilitates Access to Credit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The existence of secured assets encourages banks and financial institutions to provide larger amounts of credit at a comparatively lower interest rate. Since the lender has secured interest in the company\u2019s assets, The company can obtain funding more easily for expansion, working capital requirements or operational activities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"protection-against-default\"><span class=\"ez-toc-section\" id=\"Protection_Against_Default\"><\/span>Protection Against Default<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Charge acts as a safeguard for creditors in the event of insolvency, liquidation or non payment by the company. The charge holder obtains priority over unsecured creditors with respect to the charged assets. Thus it ensures better protection and recovery prospects for the lender.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"prevention-of-fraudulent-dealings\"><span class=\"ez-toc-section\" id=\"Prevention_of_Fraudulent_Dealings\"><\/span>Prevention of Fraudulent Dealings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Registration and disclosure of charges prevent the company from wrongfully dealing With or disposing of charged assets without the knowledge of creditors. It ensures accountability in corporate borrowings and protect the interest of<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"essential-elements-for-creation-of-charge\"><span class=\"ez-toc-section\" id=\"Essential_Elements_for_the_Creation_of_Charge\"><\/span>Essential Elements for the Creation of Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following are the essential elements required for the creation of a charge:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There should be at least two parties to a charge. (creator and charge holder)<\/li>\n\n\n\n<li>There should be a subject matter of such charge which may be a current or future property.<\/li>\n\n\n\n<li>There should be an intention of the borrower to secure a debt against such property.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"kinds-of-charges-under-companies-act\"><span class=\"ez-toc-section\" id=\"Kinds_of_Charges\"><\/span>Kinds of Charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Type of Charge<\/th><th>Description<\/th><th>Examples<\/th><\/tr><\/thead><tbody><tr><td>Fixed Charge<\/td><td>A charge is said to be fixed when it is created against the assets which are definite and ascertained at the time of creation of such charge and doesn\u2019t change over a period of time.<\/td><td>Land, building, plant and machinery etc.<\/td><\/tr><tr><td>Floating Charge<\/td><td>A floating charge is not attached to any definite or specific property and covers the property of fluctuating nature for example Stock in trade. The nature of a floating charge is that the security remains dormant until it is fixed. The assets are mortgaged in such a way that the mortgagor i.e. The company can deal with them without the concurrence of the mortgagee.<\/td><td>Stock in trade and fluctuating assets<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"fixed-charge\"><span class=\"ez-toc-section\" id=\"Fixed_Charge\"><\/span>Fixed Charge<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A charge is said to be fixed when it is created against the assets which are definite and ascertained at the time of creation of such charge and doesn\u2019t change over a period of time For eg. land, building, plant and machinery etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"floating-charge\"><span class=\"ez-toc-section\" id=\"Floating_Charge\"><\/span>Floating Charge<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A floating charge is not attached to any definite or specific property and covers the property of fluctuating nature for example Stock in trade. The nature of a floating charge is that the security remains dormant until it is fixed. The assets are mortgaged in such a way that the mortgagor i.e. The company can deal with them without the concurrence of the mortgagee.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"legal-provisions-related-to-charges-under-the-companies-act-2013\"><span class=\"ez-toc-section\" id=\"Legal_Provisions_Related_to_Charges_Under_the_Companies_Act_2013\"><\/span>Legal Provisions Related to Charges Under the Companies Act, 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Companies Act, 2013 contains detailed provisions relating to the creation, registration, maintenance, and satisfaction of charges created by companies on their assets or properties. These provisions ensure transparency and protect the interests of creditors, investors, and stakeholders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-77-duty-to-register-charges\"><span class=\"ez-toc-section\" id=\"Section_77_Duty_To_Register_Charges_Etc\"><\/span>Section 77. Duty To Register Charges, Etc.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 77 provides that it shall be the duty of every company creating a charge within or outside India on its property or assets or any of its undertakings, whether tangible or otherwise and situated in India or outside India, to register the particulars of such charge signed by the company and the charge holder, together with the instruments creating such charge in such form and on the payment of such fees and in such manner as may be prescribed with the Registrar within 30 days of its creation.<\/p>\n\n\n\n<p>Provided that the Registrar may, on the application by the company allow such registration to be made \u2013<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In case the charges created before the commencement of the Companies (Amendment) Act, 2019, within a period of 300 days of such creation; or<\/li>\n\n\n\n<li>In case the charges created on or after the commencement of the Companies (Amendment) Act, 2019, within a period of 60 days of such creation,<\/li>\n<\/ul>\n\n\n\n<p>On the payment of such additional fees as may be prescribed:<\/p>\n\n\n\n<p>Provided further that if the registration is not made within a period specified in clause (a), it shall be made within 6 months from the date of commencement of the Companies&#8217; Amendment Act 2019 on the payment of such additional fees as may be prescribed, or if the registration is not made within a period specified in clause (b), it shall be made within a further period of 60 days after the payment of such ad valorem fees as may be prescribed.<\/p>\n\n\n\n<p>Where the charge is registered with the Registrar in subsection (1), the Registrar shall issue a certificate of registration in such form and in such manner as may be prescribed to the company and to the person in whose favour the charge is created.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"key-highlights-of-section-77\"><span class=\"ez-toc-section\" id=\"Key_Highlights_of_Section_77\"><\/span>Key Highlights of Section 77<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Particulars<\/th><th>Details<\/th><\/tr><\/thead><tbody><tr><td>Applicability<\/td><td>Charges created within or outside India<\/td><\/tr><tr><td>Registration Time Limit<\/td><td>Within 30 days of creation<\/td><\/tr><tr><td>Extended Time Period<\/td><td>Additional period allowed subject to payment of additional fees<\/td><\/tr><tr><td>Authority<\/td><td>Registrar of Companies (ROC)<\/td><\/tr><tr><td>Certificate Issued<\/td><td>Certificate of registration of charge<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-78-application-for-registration-of-charge\"><span class=\"ez-toc-section\" id=\"Section_78_Application_For_Registration_Of_Charge\"><\/span>Section 78. Application For Registration Of Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 78 of the Companies Act, 2013, deals with a situation where a company fails to register a charge created on its assets or undertakings within the prescribed time; in such a case, the person in whose favour the charge is created is empowered to apply for the registration of the charge with the Registrar.<\/p>\n\n\n\n<p>The Registrar may, on such application within a period of 14 days after giving notice to the company, allow such registration on payment of such fees as may be prescribed unless the company itself registers the charge or shows sufficient cause why such charge should not be registered.<\/p>\n\n\n\n<p>The person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of a charge.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"important-points-under-section-78\"><span class=\"ez-toc-section\" id=\"Important_Points_Under_Section_78\"><\/span>Important Points Under Section 78<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The charge holder can directly apply for registration.<\/li>\n\n\n\n<li>The Registrar must give notice to the company.<\/li>\n\n\n\n<li>The company gets an opportunity to explain objections.<\/li>\n\n\n\n<li>The charge holder can recover fees paid from the company.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-80-date-of-notice-of-charge\"><span class=\"ez-toc-section\" id=\"Section_80_Date_Of_Notice_Of_Charge\"><\/span>Section 80. Date Of Notice Of Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Where any charge on any property or assets of a company is registered with the Registrar under section 77, any person acquiring such property or assets shall be deemed to have notice of the charge from the date of such registration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"significance-of-section-80\"><span class=\"ez-toc-section\" id=\"Significance_Of_Section_80\"><\/span>Significance Of Section 80<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Registration of a charge acts as constructive notice to third parties. Any person acquiring the charged property is presumed to be aware of the registered charge from the date of registration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-81-register-of-charges\"><span class=\"ez-toc-section\" id=\"Section_81_Register_Of_Charges\"><\/span>Section 81. Register Of Charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Registrar shall maintain a register of charges with respect to every entity containing the particulars of charges registered with it by that entity under this chapter, and such register of charges shall be open to inspection by any person on payment of such fees as may be prescribed for each inspection.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"features-of-register-of-charges\"><span class=\"ez-toc-section\" id=\"Features_Of_Register_Of_Charges\"><\/span>Features Of Register Of Charges<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Feature<\/th><th>Description<\/th><\/tr><\/thead><tbody><tr><td>Maintained By<\/td><td>Registrar of Companies<\/td><\/tr><tr><td>Contents<\/td><td>Particulars of registered charges<\/td><\/tr><tr><td>Inspection Rights<\/td><td>Open to public inspection on payment of fees<\/td><\/tr><tr><td>Purpose<\/td><td>Ensures transparency and public access<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-82-satisfaction-of-charges\"><span class=\"ez-toc-section\" id=\"Section_82_Satisfaction_Of_Charges\"><\/span>Section 82. Satisfaction Of Charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A charge is said to be satisfied when the company has fully discharged the debt or obligation for which the charge was created. Section 82 provides that a company shall give intimation to the Registrar in the prescribed manner regarding the payment or satisfaction in full of any charge registered with it. Such intimation is required to be filed within 30 days from the date of satisfaction of the charge. Upon receiving the intimation of satisfaction, the Registrar verifies the particulars and records a memorandum of satisfaction of charge in the register maintained with it.<\/p>\n\n\n\n<p>Where the company fails to file the satisfaction within the prescribed period of 30 days, additional time may be allowed for the payment of additional fees as prescribed under the Act and rules framed thereunder.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"compliance-requirements-under-section-82\"><span class=\"ez-toc-section\" id=\"Compliance_Requirements_Under_Section_82\"><\/span>Compliance Requirements Under Section 82<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company must intimate satisfaction of charge to the Registrar.<\/li>\n\n\n\n<li>Filing must be completed within 30 days.<\/li>\n\n\n\n<li>Registrar records memorandum of satisfaction.<\/li>\n\n\n\n<li>Delay may attract additional fees.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"summary-of-sections-77-to-82\"><span class=\"ez-toc-section\" id=\"Summary_Of_Sections_77_To_82\"><\/span>Summary Of Sections 77 To 82<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Section<\/th><th>Subject Matter<\/th><th>Main Purpose<\/th><\/tr><\/thead><tbody><tr><td>Section 77<\/td><td>Duty to Register Charges<\/td><td>Mandatory registration of charges<\/td><\/tr><tr><td>Section 78<\/td><td>Application by Charge Holder<\/td><td>Protects charge holder rights<\/td><\/tr><tr><td>Section 80<\/td><td>Notice of Charge<\/td><td>Constructive notice to third parties<\/td><\/tr><tr><td>Section 81<\/td><td>Register of Charges<\/td><td>Maintains public records of charges<\/td><\/tr><tr><td>Section 82<\/td><td>Satisfaction of Charges<\/td><td>Records discharge of liabilities<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The provisions relating to charges under the Companies Act, 2013 are essential for maintaining financial transparency and safeguarding the interests of creditors and stakeholders. Proper registration, maintenance, and satisfaction of charges ensure legal compliance and enhance corporate accountability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-83-power-of-registrar-to-make-entries-of-satisfaction-and-release\"><span class=\"ez-toc-section\" id=\"Section_83_Power_of_Registrar_to_Make_Entries_of_Satisfaction_and_Release_in_Absence_of_Intimation_From_Company\"><\/span>Section 83. Power of Registrar to Make Entries of Satisfaction and Release in Absence of Intimation From Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 83 provides that where the Registrar is satisfied, either:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>On evidence received by him, or<\/li>\n\n\n\n<li>Otherwise,<\/li>\n<\/ul>\n\n\n\n<p>That the debt for which the charge was given has been satisfied in whole or in part, or part of the property charged has been released or has ceased to form a part of a company\u2019s property, the Registrar may enter in his register of charges a memorandum of satisfaction or release of such a charge.<\/p>\n\n\n\n<p>This may be done even if no intimation has been received from the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"key-points-section-83\"><span class=\"ez-toc-section\" id=\"Key_Points_Under_Section_83\"><\/span>Key Points Under Section 83<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Provision<\/th><th>Explanation<\/th><\/tr><\/thead><tbody><tr><td>Registrar\u2019s Power<\/td><td>The Registrar may record satisfaction or release of charge.<\/td><\/tr><tr><td>Basis of Action<\/td><td>Registrar may act on evidence received or otherwise.<\/td><\/tr><tr><td>Partial Satisfaction<\/td><td>Applicable even when debt is partly satisfied.<\/td><\/tr><tr><td>Release of Property<\/td><td>Applicable where charged property is released or ceases to belong to the company.<\/td><\/tr><tr><td>No Intimation Requirement<\/td><td>Registrar can act even without communication from the company.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-85-company-register-of-charges\"><span class=\"ez-toc-section\" id=\"Section_85_Companys_Register_of_Charges\"><\/span>Section 85. Company\u2019s Register of Charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every company shall keep at its registered office a register of charges in such a form and in such a manner as may be prescribed, which shall include all charges affecting any property or assets of the company or any of its undertakings.<\/p>\n\n\n\n<p>A copy of the instrument creating the charge shall also be kept at the registered office of the company along with the register of charges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"requirements-under-section-85\"><span class=\"ez-toc-section\" id=\"Requirements_Under_Section_85\"><\/span>Requirements Under Section 85<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintain a register of charges at the registered office.<\/li>\n\n\n\n<li>Include all charges affecting company assets or undertakings.<\/li>\n\n\n\n<li>Maintain records in the prescribed form and manner.<\/li>\n\n\n\n<li>Keep a copy of the charge instrument with the register.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"section-86-punishment-for-contravention\"><span class=\"ez-toc-section\" id=\"Section_86_Punishment_for_Contravention\"><\/span>Section 86. Punishment for Contravention<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If any company is in default in complying with any of the provisions of this chapter, the company shall be liable to a penalty of \u20b9500,000, and every officer of the company who is in default shall be liable to a penalty of \u20b950,000.<\/p>\n\n\n\n<p>If any person wilfully furnishes any false or incorrect information or knowingly suppresses any material information required to be registered in accordance with the provisions of this chapter, he shall be liable for action under Section 447.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"penalties-under-section-86\"><span class=\"ez-toc-section\" id=\"Penalties_Under_Section_86\"><\/span>Penalties Under Section 86<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Default<\/th><th>Penalty<\/th><\/tr><\/thead><tbody><tr><td>Company contravening provisions<\/td><td>\u20b9500,000<\/td><\/tr><tr><td>Officer in default<\/td><td>\u20b950,000<\/td><\/tr><tr><td>False or incorrect information \/ suppression of material facts<\/td><td>Action under Section 447<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"forms-under-companies-registration-of-charges-rules-2014\"><span class=\"ez-toc-section\" id=\"Forms_Prescribed_Under_the_Companies_Registration_of_Charges_Rules_2014\"><\/span>Forms Prescribed Under the Companies (Registration of Charges) Rules, 2014<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Form<\/th><th>Purpose<\/th><\/tr><\/thead><tbody><tr><td>CHG-1<\/td><td>Application to register the creation or modification of a charge<\/td><\/tr><tr><td>CHG-2<\/td><td>Certificate of registration of charge by Registrar<\/td><\/tr><tr><td>CHG-3<\/td><td>Certificate of modification of charge<\/td><\/tr><tr><td>CHG-4<\/td><td>Form for filing the satisfaction of a charge<\/td><\/tr><tr><td>CHG-5<\/td><td>Certification of registration of satisfaction of charge<\/td><\/tr><tr><td>CHG-6<\/td><td>Intimation of appointment or cessation of a receiver or manager<\/td><\/tr><tr><td>CHG-7<\/td><td>Register of charges maintained by the company<\/td><\/tr><tr><td>CHG-8<\/td><td>Application to the Central Government for condonation of delay<\/td><\/tr><tr><td>CHG-9<\/td><td>Application for registration of charge created against debentures<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The provisions relating to charges under the Companies Act, 2013, form an essential part of financial regulation of an entity. They ensure transparency in borrowing transactions and provide legal protection to creditors by securing their interests over the assets of the company.<\/p>\n\n\n\n<p>Non-compliance with statutory provisions may result in penalties and can adversely affect the enforceability of security interests. Hence, companies must exercise due diligence in complying with the legal requirements relating to charges under the Companies Act, 2013.<\/p>\n\n\n\n<p>Overall the law relating to charges under the Companies Act, 2013, strikes a balance between facilitating corporate borrowing and safeguarding the interests of creditors, thereby contributing to a more transparent and reliable corporate financial system. <strong>References:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Companies Act, 2013<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Introduction A Charge refers to an interest or lien created on the assets or properties of a company as a security for repayment of loans or fulfilment of financial obligations. It acts as a safeguard for lenders and financial institutions by providing them with a legal right over the company\u2019s assets in the event of<\/p>\n","protected":false},"author":1459,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"two_page_speed":[],"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[20],"tags":[918],"class_list":{"0":"post-24063","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-company-law","7":"tag-company-law"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/24063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/users\/1459"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/comments?post=24063"}],"version-history":[{"count":2,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/24063\/revisions"}],"predecessor-version":[{"id":24166,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/24063\/revisions\/24166"}],"wp:attachment":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/media?parent=24063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/categories?post=24063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/tags?post=24063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}