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CA Intermediate · Corporate and Other Laws · Registration of Charges

Bharat Polymers Ltd. created a charge on 10 June in favour of a lender. The company missed the 30-day period, and the lender now files the particulars on day 55 after creation, with the prescribed additional fee. Under the Companies Act, 2013, what is the position regarding the Registrar's power to register the charge?

The Registrar can register a late charge within 300 days of its creation, that is, 30 days plus a further 270 days, if additional fees are paid. Since day 55 falls inside this period, the Registrar has the power to register the charge without any tribunal order.

  1. AThe Registrar may allow registration within 300 days of creation on payment of additional feesCorrect
  2. BThe Registrar may allow registration only within 60 days of creation
  3. CThe Registrar has no power; only the National Company Law Tribunal can condone the delay
  4. DThe Registrar may allow registration at any time without limit if the lender pays a fee

Explanation

The Act allows registration within 30 days of creation, and the Registrar may permit it within a further 270 days (that is, within 300 days of creation) on payment of additional fees. Day 55 is within this window, so the Registrar can register it. Delay beyond 300 days needs a different route, namely an application to the Central Government/NCLT-based condonation as per the Act, so the 'no limit' option is wrong.

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