whether charge is required ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2011 Dear Experts,

1) my client has taken an O.D 6 months ago, bank has not filed Form 8, I want to know whether form 8 is applicable for O.D also , if yes, do we need to go for condonation & what forms are to be filed ?

2) if the property of the Director is mortgaged , will there be a question of filing form 8 as i understand that only the property of the company can be mortgaged and a charge can be created.

thanks in advance

CA.JASPAL SINGH

CA.JASPAL SINGH (Expert)
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30 June 2011 OD is a facility given by the Banker to its regular and preferred customers and is not secured against anything. As such no charge and no Form-8

Secondly, Charge is only against the property of the Company as company cannot pledge assets belonging to someone else.

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2011 Dear Jaspal Singhji

Thanks for your reply,

regarding First point, will there be any change if the company has taken C.C facility & not O.D facility, is the charge applicable on C.C