Company law (creation of charge)
Deepak Goyal
(Querist) 05 November 2012
This query is : Resolved
Dear Sir/Madam,
Our Public Company taken a loan of Rs. 2 crores as adhoc limit 90 days basis from Bank. Date of instrument is 08.06.2012. Form no. 8 for creation of Charge is filed on 09.08.2012, delay is 32 days.
I have filed Petition to Regional Director. Order received from Regional Director for payment a cost of Rs. 5000, but our Company is not interested to pay cost on the contention that 90 days has been left and we have paid the amount to Bank.
On the above situation i want to know that what is the consequence occurred, if we not paid the cost to ROC.
Please Reply
Thanks & Regards
D.K. Goyal
c.p.s. ramachary
(Expert) 06 November 2012
First of all, understand the difference between creation of charge (in the bank) & filing of particulars of charge (in ROC) under Sec. 125 of Companies Act. If particulars of charge created are not registered with ROC, then, the charge created will not have priority over Official Liquidator when the company is ordered for winding up or against any second charge holder of the company's property. Hence bank may not take such chance and loose the security or leave the charge unregistered. The bank may compel you to file Forms 8 & 13. Otherwise the bank may pay the penalty after a due notice to you and claim reimbursement of the amount from you or debit your account treating it as part of advance and recover it from you together with interest. You may request the ROC to reduce the penalty and pay the same. Even otherwise you have no alternative except to pay the penalty levied by the ROC.
