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CS Executive · Company Law and Practice · Charges

Kaveri Foods Ltd mortgages its warehouse to a lender on 1 June (a date after the Companies (Amendment) Act, 2019 came into force). The company files particulars of the charge with the Registrar on the 20th day after creation, with no application for extension. What is the position under Section 77?

The filing is in time because the basic period for registering a charge is thirty days from its creation. The longer sixty-day window needs an application to the Registrar and additional fees, which is unnecessary for a filing made on the twentieth day.

  1. AThe filing is late because registration is required within 7 days
  2. BThe filing is within the basic period of thirty days from creationCorrect
  3. CThe filing is valid only if made within sixty days with additional fees, so a 20-day filing is invalid
  4. DThe filing needs prior approval of the Central Government

Explanation

Section 77(1) requires registration within thirty days of creation. The sixty-day period applies only where the Registrar allows it on application with additional fees. A filing on the 20th day falls within the basic thirty days, so no extension is needed.

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