Creation of charge by company

the opening lines of section 77(1) reads as follows:
"(1) It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the....."

section clears the issue by using the words 'its'. hence property of director need not be included in charge against company. bank will register the memorandum of deposit of title deeds by such directors with district registrar.

however practically, banker may insist to include the properties of directors in charge. howsoever illogical that may seem, we need to oblige his request to obtain sanction of funds from bank. clear?

also in form chg1 there is a field asking to state whether all the properties in the charge are owned by the company and if not state the names of owner. so chg1 recognises third party security while act doesn't call for such.
feel free to correct me, if I was wrong.

Company is NOT required to file charge for personal property of director.

 

ok sir, thank you for this

so basically, I have to not file for creation of charge.?

Sir,

KIndly suggest in this case also.

There is a Proprietorship firm (Borrower) provided DOH for creation of charge whose Proprietor is a Private Limited Company (Co-borrower).

Is it required to file form CHG 1 in the name of the Company considering the company is a proprietor of the firm.