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Charge under the companies act, 2013

Co Act 2013 212 views 3 replies

Toni Das

89 Points Joined August 2015

Dear Learned Members,

ABC Pvt Ltd has availed a Term Loan of INR 5 Crores from its Bankers at certain terms and conditions. The company had filed e-form 8 under the old Act for charge creation.

Now the Company has availed a Foreign LC/Buyer Credit of INR 10 Crore. However, the repayment terms, margin, collateral are different from the existing one.

Therefore, would this amount to Modification of the existing charge or a fresh creation of charge?

Thanking you in advance.

Replies (3)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

It will be advisable to file fresh charge for the new facility.

pawan

Officer- Treasury at Century Enka Limite

22 Points Joined October 2009

Agreeing to P C Agrawal Sir, I would like to add Term loan and LC/BC are all together diffrent facilities LC/BC comes under non fund based limits and you have created charge on term loan, you have to create a fresh charge for new facilities being sanctioned.