# Registration of Charges — Section 77
## 1. Duty to Register — Sec. 77(1)
It is the duty of the company creating a charge:
- Within or outside India,
- On its property, assets, or any of its undertakings,
- Whether tangible or otherwise,
- And situated in or outside India,
to register the particulars of the charge with the Registrar of Companies.
## 2. How to Register
| Item | Requirement |
|---|---|
| Form | CHG-1 (general) or CHG-9 (for debentures) |
| Documents | Form + copy of instrument creating the charge, signed by both the company and the charge-holder |
| Timeline | Within 30 days of creation of charge |
| Fee | Prescribed fee (additional/ad valorem if delayed) |
| Preservation | The instrument creating/modifying a charge must be preserved for 8 years from the date of satisfaction of charge |
Sec. 77 does not apply to certain charges prescribed in consultation with the RBI.
## 3. Verification of the Instrument of Charge
### Property situated in India (wholly or partly)
Copy verified by a certificate issued under the hand of:
- A director or company secretary of the company, OR
- An authorised officer of the charge-holder.
### Property situated outside India
Copy verified by a certificate issued either:
- Under the seal of the company (if any), or
- Under the hand of a director / CS / authorised officer of the charge-holder, or
- Under the hand of some other person (not being the company) who is interested in the mortgage or charge.
This rule does not apply to charges created/modified by a banking company in favour of the RBI under the RBI Act, 1934.
## 4. Extension of Time — Two Regimes
The rules differ based on when the charge was created:
### A. Charge Created Before 2nd Nov 2018
```
Step 1: Register within 30 days of creation
│ (if missed)
Step 2: Register within 300 days of creation
on payment of additional fees
│ (if missed)
Step 3: Register within 6 months from 2nd Nov 2018
with additional fees (different rates for
different classes of companies)
```
### B. Charge Created On or After 2nd Nov 2018
```
Step 1: Register within 30 days of creation
│ (if missed)
Step 2: Register in next 30 days (i.e., within 60 days
from creation) with additional fees
│ (if missed)
Step 3: Register within a further 60 days (i.e., total
120 days from creation) with ad-valorem fees
```
## 5. Procedure for Seeking Extension
1. Company files an application to the Registrar in Form CHG-1 (or CHG-9 for debentures).
2. The application must be supported by a declaration from the company, signed by its CS or a director, that such belated filing shall not adversely affect the rights of any other intervening creditors.
3. Pay the required additional fee or ad valorem fee, as applicable.
### Registrar's Satisfaction
The Registrar must be satisfied that the company had sufficient cause for not filing the particulars and instrument within the original 30-day period. Only then will registration in the extended period be allowed.
## 6. Rights of the Lender / Charge-Holder
The rights of the charge-holder are not affected by the delay — they remain as they were before the actual registration, i.e., rights are deemed to have accrued from the date of creation of charge, even where actual registration happens within the extended period.
## 7. Quick Recap Table
| Particular | Detail |
|---|---|
| Initial period | 30 days from creation |
| Extended period (post 2 Nov 2018) | + 30 days + 60 days = 120 days total |
| Forms | CHG-1 / CHG-9 |
| Preservation of instrument | 8 years from satisfaction |
| Signed by | Both company and charge-holder |