Creation of charge - roc

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chandervesh arora (Querist)
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07 January 2013 -
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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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08 January 2013 Even though charge u/s 125 is required to be registered in case of a security of assets of the company, in this case bank is right in their approach since legally and practically though the property under pledge does not belong to company, yet the loan is given in the name of the company to purchase P&M. Therefore, bank is right to insist charge creation as otherwise the bank will not be able to enforce charge in its favour in case of default even on director's property.
But since you have repaid your occ already and no more OCC exists as of now, you may talk to the bank in this matter and convince them that now since the OCC itself has been repaid in full, there is no point in creation of charge with the ROC with penalty and then filing satisfaction of charge. But if the bank still insists, you may have to file the same since legally the bank is correct in its approach. Wait for other opinions.

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chandervesh arora

chandervesh arora (Querist)
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08 January 2013 ............................................................................

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