Registration of charge of a government company

This query is : Resolved

Kavitha (Querist)
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10 June 2010 HI,

Kindly let me know if a bank is giving loan to a government company for purchase of assets a charge has to registered for the same or not?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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10 June 2010 A charge requires registration if
it is created by a company . Company include government company also.

Kavitha

Kavitha (Querist)
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11 June 2010 Dear Sir,

Thank you for your reply.I too agree with your view but can u support this with some case laws or notifications issued?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Regarding registration of charge by a Government Company, here’s a clear explanation with relevant legal backing:

Legal Position:
Section 2(45) of the Companies Act, 2013 defines a Company, which includes a Government Company.
Section 77 of the Companies Act, 2013 mandates registration of charges created by any company, which includes Government Companies.
Therefore, any charge created by a Government Company must be registered with the ROC within the prescribed time.
Important References:
Section 77 of the Companies Act, 2013:
"The company shall, within thirty days of the creation of charge, file with the Registrar the particulars of the charge."
This applies to all companies including Government companies.
Definition of Government Company under Companies Act, 2013 (Section 2(45)):
"Government company means any company in which not less than fifty-one percent of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments."
Case Law:
While there may be limited direct case law specifically on Government Companies and charge registration, the general principle is that Government Companies are treated as Companies under the Act and are bound by the same provisions.
Conclusion:
Yes, when a Government Company takes a loan and creates a charge on its assets, it is mandatory to register the charge with the ROC, just like any other company.
Failure to do so can attract penalties and affect the charge-holder’s rights.

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