Charge Registration & Modification — CHG-1, CHG-4, CHG-9

Section 77(1) of the Companies Act, 2013: every company must register a charge created on its assets with the Registrar of Companies within 30 days of creation; applies to charges created within or outside India. Section 77(3) of the Companies Act, 2013: unregistered charge is void against the liquidator and creditors of the company. Companies (Registration of Charges) Rules 2014, Rule 3: prescribes CHG-1 (creation/modification of charge other than debentures), CHG-4 (satisfaction of charge — within 30 days of repayment/release), CHG-9 (creation/modification of charge for debentures and debenture trust deeds). Section 87 of the Companies Act, 2013: application to NCLT for condonation and registration of charge where filing is delayed beyond 300 days. Companies (Registration Offices and Fees) Rules, 2014: additional fees on slab basis for late filing within 300 days.

Charge registration is a critical compliance requirement for companies in India, mandated under Section 77 of the Companies Act 2013. This provision stipulates that every company must register any charge created on its assets, whether within or outside India, with the Registrar of Companies (ROC) within 30 days of its creation. The process ensures transparency and protects the interests of creditors and stakeholders by providing a public record of encumbrances on company assets. Failure to comply with this requirement can render the charge void against the liquidator and creditors, as per Section 77(3) of the Act, which underscores the importance of timely registration to avoid legal and financial repercussions. Every bank loan, working capital facility, term loan, or overdraft secured on company assets — movable or immovable — creates a charge that must be registered.

The registration of charges involves specific forms prescribed under the Companies (Registration of Charges) Rules 2014. CHG-1 is used for the creation or modification of a charge other than debentures, including mortgages and hypothecations. CHG-4 is filed for the satisfaction of a charge, which must be done within 30 days of the repayment or release of the secured debt, as per Rule 3 of the aforesaid Rules. For debentures and debenture trust deeds, CHG-9 is the designated form, facilitating the registration of charges related to such instruments. The procedure under Rule 3 details the steps, including verification of documents, submission to the ROC, and obtaining certification, ensuring a systematic approach to compliance.

Late filing of charge registration is permissible under certain conditions. If the registration is delayed but falls within 300 days from the date of creation, the company can file with additional fees as prescribed under the Companies (Registration of Charges) Rules 2014. However, if the delay exceeds 300 days, the company must seek condonation from the National Company Law Tribunal (NCLT) under Section 87 of the Companies Act 2013, which allows the tribunal to make orders for registration upon application. An unregistered charge is void against the liquidator and creditors under Section 77(3), meaning it cannot be enforced in insolvency or winding-up proceedings. Our service handles all three charge form types, late filing with additional fees, and NCLT condonation applications where required.