Dear Members
I would be thankful if the Members could clarify my doubt, which is given below:
A Private Limited Company has availed vehicle loan of Rs.20.00 lacs from Bank. The said vehicle has been offered to the Bank as security for due repayment and discharge of the loan facility. The company has executed requisite documents with the bank at the time of availing the loan facility. I request you to kindly clarify whether it is mandatory for the company to file Form CHG-1 with ROC / MCA for creating necessary charge in favour of the bank in connection with availing of vehicle loan facility. The bank officials are not insisting for creation of such charge.
Some people has an opinion that creating charge is mandatory under the new act as e-form CHG-1 has option of Hypothecation(motor Vehicle). But Some say it is not mandatory thus creating a confusion.
Please clarify my above said doubt.
CAclubindia
