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Creation of Secondary Charge - Pari Passu Charge already created by bank

899 views 5 replies

Sanjay Subhash Surana

Chartered Accountant

24 Points Posted on 17 April 2021

Hello,

I have a question regarding Creation of Charge on Assets.

Bank has first pari passu charge on all the assets of the 100% Subsidiary Company against loan granted, now the holding company wants to create a secondary charge on all the assets of wholly owned subsidiary.

(Bank is not ready to give NOC)

1) Is that possible, if bank gives/deny NOC ?

2) If yes, what will be the procedure to be followed along with ROC filings.

Thanks & Regards

Replies (5)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 17 April 2021

1. If Bank didn't issue NOC then holding company didn't create any secondary charge on assets of subsidiary company.

Sanjay Subhash Surana

Chartered Accountant

24 Points Posted on 17 April 2021

Thanks !!

You mean to say, holding company cannot create secondary charge ? Right ?

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 17 April 2021

Holding company can create charge but as bank has been created 100% charge on assets and didn't give NOC then how the holding company can create secondary charge

Dev Yadav

student

116 Points Posted on 18 April 2021

There are some situations where Bank has to seems that the mortgaged property's value is not much higher than borrowed amount then bank may deny to issue NOC.