Company law

hiral gediya (Querist) 19 March 2013 This query is : Resolved
what is the exact meaning of subject to charge in sectiom 127 of companie act give me some exampales

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Adv k . mahesh (Expert) 19 March 2013
In companies act charge was not defined but it can be taken from Transfer of property Act u/s 100

Section 124
Charge has been defined in the Transfer of Property Act, 1882 under section 100 as -
where immovable property of one person is by act of parties or operation of law made security for payment of money to another and the transaction does not amount to a mortgage, the later person is said to have a charge on the property.

Charges include lien as well as an equitable charge whether created or evidenced by an instrument in writing or by deposit of title deeds or by an agreement to deposit. Deposit of title deeds results in creation of charges on the land even where the depositor is not a debtor. This section would apply to both Indian and Foreign companies. The charge is no where defined in the Company Act 1956.

Section 127
This section contains the provisions relating to registration of charges on property acquired subject to charge. This section deals where a company acquires a property which is already charged and such charge is not registered. In such a case, charge can be got registered by the acquiring company within a period of thirty days. This section require a company to file the particulars of property, if any, acquired by its, subject to charge. Such filing is required to be done within 30 days from which acquisition was completed.
In case of properties situated outside India, period of thirty days are counted from the date on which copy of instrument dispatched by the post with due diligence, have been received in India.

CASE LAW
T.R.TYAGARAJAN V. OFFICAIL LIQUIDATOR (1960) 30 COMP CAS 481(MAD).
It was held where a company acquires property subject to charge and fails to deliver particulars of charge to the Registrar of registration the validity of the charge is not affected.

go through the judgement and you would be ascertained (indiankanoon)