Section 78 of Companies Act, 2013 – Application for Registration of Charge

SECTION 78. APPLICATION FOR REGISTRATION OF CHARGE

[Effective from 1st April, 2014]

Where a company fails to [1] [register the charge within the period of thirty days referred to in sub-section (1) of section 77], without prejudice to its liability in respect of any offence under this Chapter, the person in whose favour the charge is created may apply to the Registrar for registration of the charge along with the instrument created for the charge, within such time and in such form and manner as may be prescribed and the Registrar may, on such application, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed:

Provided that where registration is effected on application of the person in whose favour the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge.

Applicable Rules

Companies (Registration of Charges) Rules, 2014

[Effective from 1st April, 2014]

Rule 3: Registration or creation or Modification of Charge.-

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(3) If the company fails to register the particulars of the charge with the Registrar within the period of thirty days of its creation or modification, the particulars of the charge together with a copy of the instrument, if any, creating or modifying such charge may be filed by the charge-holder, in Form No. CHG-1 or Form No. CHG-9, as the case may be, duly signed along with fee.

For Practical Guidance for filing of eForm No. CHG-1 and CHG-9 refer Section 77.

 

[1] Substituted by the Companies (Amendment) Act 2017 vide Notification No. S.O. 1833(E) dated 7^th May, 2018. Prior to the substitution it read as under:

“register the charge within the period specified in section 77”