Filling of the form 8 for modification of charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2012 Sir,

If we are filing form 8 for modification, and there is addition of security for the enhanced limit provided by the company as well as by some other company as collateral security, do we need to mention the collateral security provided by the other company under the 15the and 16th point of form 8?

CS Divya Sorayan

CS Divya Sorayan (Expert)
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11 July 2012 Yes u shud mention collateral security in those points.

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2012 Thanks for your quick response madam, but the problem is 16th point of the form is- Whether any of the property or interest therein under reference is not registered in the name of the company?, if we tick as yes all the securities we mentioned under point no. 15 will be considered as property belonging to others.

How to give clarity in the form?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2024 When filing Form 8 for modification of charge and dealing with collateral security provided by another company, you need to address the questions on the form accurately to reflect the situation correctly. Here’s how you can provide clarity in the form:

1. **Point 15 of Form 8:**
- This point asks for details of the security created or modified. If collateral security has been provided by another company, you should mention this under Point 15. Provide details such as the type of security, its nature, and the name of the company providing it.

2. **Point 16 of Form 8:**
- This point pertains to whether any of the property or interest therein under reference is not registered in the name of the company. If collateral security provided by another company is involved, you need to carefully consider how to respond to this point:
- If the collateral security provided by the other company is not directly related to the property or interest that the charge is being modified for (such as an enhanced limit or additional security), you may not need to tick "Yes" for Point 16.
- However, if the collateral security provided by the other company is indeed associated with the same property or interest covered by the charge modification, and it is not registered in the name of your company, then you would need to tick "Yes" and provide details accordingly.

3. **Clarity in Form Submission:**
- Clearly differentiate between the primary charge (enhanced limit provided by your company) and the collateral security provided by another company.
- Specify under Point 15 the exact nature and details of all securities involved, ensuring you distinguish between those directly under the charge modification and any collateral securities.
- If there is any doubt or complexity in how to fill out these sections, it may be advisable to seek guidance from a legal or financial professional who has experience with filing Form 8 and dealing with charge modifications.

4. **Documentation:**
- Ensure all supporting documents, including agreements or deeds related to the charge modification and collateral security, are attached with Form 8 as per the requirements of the Ministry of Corporate Affairs (MCA).

By providing clear and accurate information on Form 8, you ensure compliance with regulatory requirements and avoid potential discrepancies. If in doubt, consulting with a professional can help navigate the specifics of your situation effectively.

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