MCA extends time for filing forms related to Charges

Last Updated On: June 18, 2020, 7:11 p.m.
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MCA EXTENDS TIME FOR FILING FORMS RELATED TO CHARGES

Ministry of Corporate Affairs (MCA) introduces a scheme for relaxation of filing forms related to creation or modification of charges i.e Form CHG-1 and Form CHG-9.

MCA vide General circular dated 17th June, 2020 as introduced Scheme for relaxation of time for filing forms related to creation or modification of charge (Form CHG-1 and Form CHG-9) under the Companies Act, 2013.

The companies are required to file forms related to creation or modification of charges within the prescribed time limit under section 77 of the Companies Act, 2013 i.e. a total of 120 days of the creation or modification of charge.

In case, the company fails to register the charge within the period of thirty days referred to in sub-section (1) of section 77, the charge holder may file the form related to creation or modification of charges under section 78 of the Act, within the overall timelines for filing of such form under section 77. 

 

The important features of this scheme are as follows:

1.Applicability:

This introduced scheme by MCA shall be applicable in filing the Form No. CHG-1 and Form No. CHG-9 by a company or a charge holder, where the date of creation/modification of charge: 

(a) The date of creation and modification of charge is before 1st March 2020, but the timeline for filing such form had not expired under section 77 of the Act as on 1st March 2020 or

(b) The date of creation and modification of charge falls on any date between 01.03.2020 to 30.09.2020.

 

2.Relaxation of Time:

  • In case a form is filed in the period beginning from 01.03.2020 and ending on 30.09.2020 shall not be reckoned for the purpose of counting the number of days under section 77 or section 78 of the Act. In case, the form is not filed within such period, the first day after 29.02.2020 shall be reckoned as 01.10.2020 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.
  • In case a form is filed the period beginning from the date of creation/modification of charge to 30.09.2020 shall not be reckoned for the purpose of counting of days under section 77 or section 78 of the Act. In case, the form is not filed within such period, the first day after the date of creation/modification of charge shall be reckoned as 01.10.2020 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act. 

 

3.APPLICABLE FOR FEES:

  • If the form is filed on or before 30-Sep-20, the fees payable as on 29-Feb-20 shall be charged.
  • If the form is filed thereafter, the fees shall be charged after adding the number of days beginning from 01-Oct-20 and ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29-Feb-20.
  • If the form is filed before 30-Sep-20, normal fees shall be payable.
  • If the form is filed thereafter, the first day after the date of creation/modification of charge shall be reckoned as 01-Oct-20 and the number of days till the date of filing of the form shall be counted for the purposes of payment of fees.

 

4.NON-APPLICABILITY:

  • CHG-1 and CHG-9 have already been filed before the date of the issue of this Circular.
  • The timeline for filing the form has already expired under the Act prior to 1-Mar-20.
  • The timeline for filing the form expires at a future date, despite the exclusion of the time provided i.e after 30-Sep-20
  • Filing of Form CHG-4 for the satisfaction of charges


 


 

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