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CA Intermediate · Corporate and Other Laws · Registration of Charges

Kiran Pharma Ltd. executed a charge in favour of a bank. The bank, rather than the company, wishes to register it because the company is not cooperating, and the 30-day period is running. Which statement correctly states the position?

The charge-holder may itself file particulars of the charge with the Registrar if the company does not, and may recover the fees it paid from the company. No court order is needed, and the right is available within the filing period rather than only after it expires.

  1. AOnly the company can file particulars; the bank has no right to do so
  2. BThe charge-holder may itself file the particulars of the charge with the Registrar, and may recover the fees from the companyCorrect
  3. CThe bank can file only after obtaining a court order
  4. DThe bank can file only after the 30-day period has expired

Explanation

The Act allows the person in whose favour the charge is created to file the particulars with the Registrar if the company fails to do so. The fees paid by the charge-holder can be recovered from the company. No court order is required and the right is not restricted to the period after 30 days.

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