Late filing of form 8 for creation of second charge
This query is : Resolved
02 October 2012
Sir,
One of my friend is director in company. The company has taken a loan 4.5 Years back.
They were asked to create the second charge on assets of the company. First being with the other bank against term loan.
They have not yet filled the form 8 with ROC for creation and registration of second charge.
The other Bank is asking the company to create the charge now. There is already a delay of 4.5 Years.
Please tell me the procedures and the penalty that may be levied in this case.
Please tell me all the penalties. Is there any scheme which we can opt for getting reduced penalty.
One of my friend is director in company. The company has taken a loan 4.5 Years back.
They were asked to create the second charge on assets of the company. First being with the other bank against term loan.
They have not yet filled the form 8 with ROC for creation and registration of second charge.
The other Bank is asking the company to create the charge now. There is already a delay of 4.5 Years.
Please tell me the procedures and the penalty that may be levied in this case.
Please tell me all the penalties. Is there any scheme which we can opt for getting reduced penalty.
CA Suresh Jain
(Expert)
02 October 2012
Please read the following provision of The Companies Act,1956
142. PENALTIES
(1) If default is made in filing with the Registrar for registration the particulars -
(a) of any charge created by the company ;
(b) of the payment or satisfaction of a debt in respect of which a charge has been registered under this Part ; or
(c) of the issues of debentures of a series ;
requiring registration with the Registrar under the provisions of this Part, then unless the registration has been effected
on the application of some other person, the company, and every officer of the company or other person who is in
default, shall be punishable with fine which may extend to 1[five thousand] rupees for every day during which the
default continues.
(2) Subject as aforesaid, if any company makes default in complying with any of the other requirements of this Act as
to the registration with the Registrar of any charge created by the company or of any fact connected therewith, the
company, and every officer of the company who is in default, shall, without prejudice to any other liability, be
punishable with fine which may extend to 2[ten] thousand rupees.
142. PENALTIES
(1) If default is made in filing with the Registrar for registration the particulars -
(a) of any charge created by the company ;
(b) of the payment or satisfaction of a debt in respect of which a charge has been registered under this Part ; or
(c) of the issues of debentures of a series ;
requiring registration with the Registrar under the provisions of this Part, then unless the registration has been effected
on the application of some other person, the company, and every officer of the company or other person who is in
default, shall be punishable with fine which may extend to 1[five thousand] rupees for every day during which the
default continues.
(2) Subject as aforesaid, if any company makes default in complying with any of the other requirements of this Act as
to the registration with the Registrar of any charge created by the company or of any fact connected therewith, the
company, and every officer of the company who is in default, shall, without prejudice to any other liability, be
punishable with fine which may extend to 2[ten] thousand rupees.
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