Do you know charge cannot be registered after 120 days?

Highlights on the Companies Amendment (Ordinance), 2018 were circulated by our newsletter dated 5 November 2018. Out of those, one of the significant amendments is related to Charges which is discussed in this article.

Different scenario w.r.t. Creation/Modification of Charges is presented in tables below.

  Charges created/ modified Before 2 November, 2018

Sr. No.	Particulars	Fees
1.	Registration of charges within 30 days of such creation or modification	Normal Fees
2.	Registration of charges after 30 days but within 300 (30+270) days of such creation or modification	Normal Fees + additional Fees
3.	Registration of charges after 300 days of such creation or modification – to be registered within 6 months from 2 November, 2018	Normal Fees + additional Fees

Charges created/ modified after 2 November, 2018

Sr. No.	Particulars	Fees
1.	Registration of charges within 30 days of such creation or modification	Normal Fees
2.	Registration of charges after 30 days but within 60 (30+30) days of such creation or modification	Normal Fees + additional Fees
3.	Registration of charges after 60 days of such creation or modification but within 120 days such creation or modification	Normal Fees + additional Fees + Ad valorem fees
4.	Charge cannot be registered after 120 days*

* Omission/Mis-statement in the Charge created or modified can be registered after 120 days subject to Condonation of Delay

 Other Key points to be pointed:

ü    Unregistered charges are treated as unsecured

ü  In case of willful  furnish  of  false  or  incorrect  information  or knowingly  suppressing  any  material information liable  to  fraud  and attract action under Section 447