Registration of charges under the Companies Act is mandatory; unregistered charges will not be recognised by liquidators or creditors. Companies creating charges on property or undertakings, in or outside India, must register particulars and instruments with the Registrar and pay prescribed fees within specified periods; the Registrar issues a certificate of registration. Registration may be allowed within specified extended periods on payment of additional or ad valorem fees, and subsequent registration does not prejudice prior rights. A charge not duly registered with a certificate will not be taken into account by a liquidator or other creditor, though repayment obligations secured by the charge are not affected. Certain exemptions may be prescribed in consultation with the Reserve Bank of India.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Registration of charges under the Companies Act is mandatory; unregistered charges will not be recognised by liquidators or creditors.
Companies creating charges on property or undertakings, in or outside India, must register particulars and instruments with the Registrar and pay prescribed fees within specified periods; the Registrar issues a certificate of registration. Registration may be allowed within specified extended periods on payment of additional or ad valorem fees, and subsequent registration does not prejudice prior rights. A charge not duly registered with a certificate will not be taken into account by a liquidator or other creditor, though repayment obligations secured by the charge are not affected. Certain exemptions may be prescribed in consultation with the Reserve Bank of India.
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