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CA Intermediate · Corporate and Other Laws · Registration of Charges

Kaveri Auto Components Ltd. created a charge on its plant on 10 March in favour of a financial institution. The charge-holder wants to file particulars with the Registrar on 20 April, which is 41 days after creation, with payment of additional fees. Under the Companies Act, 2013, what is the correct position?

The Registrar may allow registration up to 300 days from creation on payment of additional fees. Particulars are ordinarily filed within 30 days, and 41 days is outside the 60-day window, but the extended 300-day facility applies. Either the company or the charge-holder can file.

  1. AThe Registrar can accept the filing only with the permission of the Tribunal
  2. BThe Registrar may allow registration within the extended period of 300 days from creation on payment of additional fees, so filing is allowedCorrect
  3. CRegistration is permitted only up to 60 days and the filing is therefore barred
  4. DThe filing is barred because only the company, not the charge-holder, may file particulars

Explanation

Particulars must be filed within 30 days of creation; a further 30 days is available on payment of additional fees, and beyond that up to 300 days with the Registrar's permission on payment of additional fees (ad valorem fees). At 41 days the filing falls beyond 60 days, so the 300-day extended window applies. Both the company and the charge-holder may file, so the last option is wrong.

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