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CA Intermediate · Corporate and Other Laws · Registration of Charges

Lotus Retail Ltd. passed a resolution to create a charge. Meanwhile, the bank, being the charge holder, wants to register the charge itself because the company is delaying. Which statement is correct?

The charge holder may itself file particulars of the charge with the Registrar when the company delays. The fees it pays can be recovered from the company, and the lender does not need a court order to do so.

  1. AOnly the company can file particulars of a charge
  2. BThe charge holder may also apply to register the charge, and the fees paid can be recovered from the companyCorrect
  3. CThe charge holder can register only after a court order
  4. DThe charge holder can register but cannot recover the fees from the company

Explanation

The Act allows the person in whose favour the charge is created to file the particulars if the company fails to do so. The fees paid by that person are recoverable from the company, and may be a charge on the company's amount payable to him. The option requiring a court order is wrong.

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