One of my automobile dealer clients is availing "channel finance facility" from
leading private banks, The amount is secured by lien on vehicles purchased
through out of the channel finance amount. The vehicle are kept with the dealer.
The dealer has to pay the channel finance amount within stipulated periof i.e 60
days or on the date of sale of vehicle which ever is earlier.
My question is that charge with roc require to be register or not?
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Charge with roc
Replies (1)
As per my understanding and analysis based on section 125(4) of the companies act, 1956, the charge mentioned by you is required to be registered u/s 125(4)(e) bcoz it is on movable property and in the nature of Hypothecation.
However if the dealer sold all the stock within a month and repay the bank within 30 days of taking loan, then charge is not required to be filed. But it seems quite difficult so it is advisable to file the charge.
Regards
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