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CS Executive · Company Law and Practice · Charges

Kaveri Foods Pvt Ltd creates a charge on its plant on 10 June but files the particulars with the Registrar only on day 50, after applying to the Registrar and paying additional fees. The charge was created after the commencement of the Companies (Amendment) Act, 2019. What is the position under the Companies Act, 2013?

Registration on day 50 is permissible. For charges created after the 2019 Amendment, the Registrar may, on the company's application and payment of additional fees, allow registration within sixty days of creation. The three hundred day window applies only to charges created before that amendment.

  1. AThe Registrar may allow registration within sixty days of creation on payment of additional fees, so day 50 is permissibleCorrect
  2. BRegistration after thirty days is never allowed and the charge is void
  3. CThe Registrar may allow registration only within three hundred days of creation
  4. DRegistration is allowed only after a further sixty days beyond the first thirty by the Central Government

Explanation

For charges created on or after the 2019 Amendment's commencement, the first proviso to Section 77(1) lets the Registrar, on application and additional fees, allow registration within sixty days of creation. Day 50 falls in this window. The three hundred day period applied to older charges only.

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