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CS Executive · Company Law and Practice · Charges

Neelkamal Ltd failed to register a charge within the permitted period. Under Section 78, who else may apply to the Registrar for registration, and what may that person recover from the company?

The person in whose favour the charge is created may apply to the Registrar with the charge instrument. If registration is effected on his application, he is entitled to recover from the company the fees or additional fees he paid to the Registrar for registering the charge.

  1. AThe person in whose favour the charge is created; the fees or additional fees paid by him for registrationCorrect
  2. BAny shareholder of the company; a fixed penalty from the company
  3. CThe liquidator only; the cost of winding up
  4. DAny other creditor; the amount of the debt owed to him

Explanation

Section 78 allows the charge-holder to apply to the Registrar, with the instrument, where the company fails to register in time. The proviso entitles that person to recover from the company the fees or additional fees he paid for registration.

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