Dear All,
Our company has taken CC Against the Hypothecation of Stock & Debtors. The fixed Assets are given as collateral security. Bank has created two separate charges for these on the ground that there are two documents executed, i.e. Hypothecation and Mortgage by deposit of title deeds (Momarandom of entry). Thus,
when one checks on the MCA website, the two charges are shown thereby showing double liability in the website.
e.g. A charge of Rs.50.00 Cr. is created by hypothecation under XYZ charge ID and the charge on fixed assets is created for the same amount under XXX Charge ID.
Here, another point occurs to my mind that in case the company has a borrowing above Rs.100 cr., it attracts different conditions as per the Comanies Act, 2013.
Can anywone through light on the correct procedure?
Thisprocedure is followed by nationalised as well as private banks alike.
Thanks,
CAclubindia
