Charge Creation
This query is : Resolved
05 June 2010
Hi Everybody. My question is can a Company create a charge on future assets i.e. assets yet to be acquired by the Company?
05 June 2010
AGREE. WITHOUT OWNING ASSETS YOU CANT CREATE CHARGE AGAINST IT.
05 June 2010
Thnxs Experts. The Bank has executed the following documents:
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
05 June 2010
Thnxs Experts. The Bank has executed the following documents:
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
1. DP Note
2. Declaration from Company that it shall create a charge on the asset within 30 days of its acquisition specifying clearly the details of the property to be so acquired.
3. Term Loan Agreement
4. Agreement of Hypothecation of property (to be acquired).
Can the charge be created on the basis of the above documents or is the mortgage document required? Is there any other document required for the same?
Can you give reference to the Sections or any case law in support of the answer?
05 June 2010
Agree with the opinion of the above experts. Only in case of rotating assets, future liability can be created. Not offices etc.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- STCG FOR GOLD ETFs
- STCG on ETF gold & silver
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- REGARDING GST LIABILITY/....
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
