Chg-1 form company taking guarantee from another company. how to create charge

hey i am new in this profession i need your help. ABC PRIVATE LIMITED has taken a loan of 30 crore from UCO bank and hypothicate the property of TWO companies namely PQR PRIVATE LIMITED(15 CRORE) AND XYZ PRIVATE LIMITED(15 CRORE) LOAN IS FOR CC LIMIT.

ALL THREE COMPANIES OWNED BY SAME DIRECTOR.

NOW MY QUESTION IS FOR WHICH COMPANY SHOULD I FILE FORM CHG-1 AND WHAT IS THE DIFFENRENCE BETWEEN CHARGE HOLDER AND THE COMPANY(option is showing in chg-1 form) please answer as soon as possible

Replies (2)
Quick Summary
This discussion clarifies the process of filing Form CHG-1 when a company takes a loan and another company provides a guarantee by hypothecating its property. The key takeaway is that Form CHG-1 must be filed by the companies whose properties are being charged (PQR Private Limited and XYZ Private Limited in this case), not the company that initially took the loan (ABC Private Limited). The bank acts as the charge holder.

Only ABC required to create the charge

PQR and XYZ have to file CHG-1 since charge is created on their properties.  Bank is the charge holder.  ABC is not required to file CHG-1 since no charge is created on its properties.

 

 

 

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