## Registration of Charge – Duty and Time Limits

### Whose Duty? (Section 77)

It is the duty of the company creating the charge to register particulars of the charge with the Registrar of Companies (ROC). The charge-holder may also apply (Section 78) if the company fails.

### Forms Used

Form CHG-1 – for charges other than debentures
Form CHG-9 – for charges created in connection with debentures

### Time Limit – Two Regimes

#### A. Charge created BEFORE 02.11.2018

1. Register within 30 days of creation.

2. If missed → register within 300 days of creation with additional fees.

3. If still missed → register within 6 months from 02.11.2018 with additional fees.

#### B. Charge created ON OR AFTER 02.11.2018

1. Register within 30 days of creation.

2. If missed → register within next 30 days (i.e., 60 days total) with additional fees.

3. If still missed → register within a further 60 days with ad valorem fees.

### Certificate of Registration

On registration, the ROC issues a Certificate of Registration in Form CHG-2 (or CHG-3 for modifications under Section 79). This certificate is conclusive evidence that registration requirements have been complied with.

### Modification of Charge (Section 79)

Any modification in the terms of an existing charge (change in rate of interest, repayment terms, amount secured, etc.) must also be registered within the same time limits as creation.

Worked example

### Example 1

Example 1: A Ltd. creates a charge on 1st January 2024 (post 02.11.2018 regime). It can register the charge: (a) within 30 days normally (by 31 Jan 2024); (b) by 1 March 2024 with additional fees (next 30 days); (c) by 30 April 2024 with ad valorem fees (further 60 days). After this, condonation by the Central Government becomes necessary.

### Example 2

Example 2: B Ltd. created a charge on 15.06.2018 (pre 02.11.2018 regime) and forgot to register. It had to register within 300 days from 15.06.2018, failing which it had to be registered within 6 months from 02.11.2018 with additional fees.

⚠️ Common exam mistakes

Confusing the two regimes – applying 300 days to a post-2018 charge.
Forgetting that ad valorem fees apply only in the second extension (further 60 days) under the post-2018 regime.
Assuming the charge-holder's duty is primary – the primary duty lies with the company under Section 77.
Using Form CHG-1 for debenture charges – CHG-9 is the correct form for debentures.

Bare-Act text Sections 77 & 79 · The Companies Act, 2013 · click to expand

Section 77(1): It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation.

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Filing Particulars of Creation/Modification of Charge (Sections 77 & 79) – Time Limits

Worked example

⚠️ Common exam mistakes