Applicability Form 8 - car loans

[Guest]

Is filing of Form 8 (registration of charge) with Registrar of Companies applicable in case of car loans which are secured by hypothecation of cars acquired on Equitable Monthly Installment (EMI) system ?

AI Summary

Form 8 Not Required for Car Loans Secured by Hypothecation Under EMI; Not a Charge Under Companies Act, 1956. A query was raised regarding the necessity of filing Form 8 with the Registrar of Companies for car loans secured by hypothecation under the EMI system. The response clarified that under the Companies Act, 1956, a charge includes a mortgage, but a pledge of movable property is not subject to charge provisions. Since hypothecation is considered a pledge rather than a mortgage, it falls outside the provisions of charge under Chapter V of the Companies Act, 1956.