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CA Intermediate · Corporate and Other Laws · Registration of Charges

Sundaram Textiles Ltd. created a charge on its factory land in favour of Canara Bank on 1 March. The company did not file the particulars of the charge within the normal 30-day period. Under the Companies Act, 2013, what is the correct position regarding the late filing of this charge?

If the 30-day period is missed, the Registrar may permit registration of the charge within an additional 300 days on payment of additional fees. No court order is needed in this window. Only after the extended period lapses does a different, higher-level condonation route become necessary.

  1. AThe Registrar can never accept the charge after 30 days, and the charge becomes void permanently
  2. BThe charge may be registered within a further period of 300 days on payment of additional fees, without any court orderCorrect
  3. CThe charge may be registered at any time within 5 years on payment of fees, as the Registrar has unlimited discretion
  4. DThe charge may be registered after 30 days only by an order of the National Company Law Tribunal

Explanation

The Act allows particulars of a charge to be filed within 30 days of creation. If missed, the Registrar may allow filing within a further 300 days on payment of additional fees. Beyond that, the company must approach the Central Government (now handled under the prescribed procedure), so the NCLT-only option and the permanent-bar option are wrong.

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