Eform chg-1 vs e-form chg-9 (difference in charge and charge for debenture?)

MCA 2220 views 6 replies

I understand that Form CHG-1 is for creation or modification of a charge whereas EForm CHG-9 is for creation or modification of charge for debenture. I am unable to understand the difference between a charge and charge for debenture. Can members please clarify the difference between the two here and also in what circumstances which form is used.

Thanking you in anticipation. 

Replies (6)

But what is the difference then as even in Form CHG-9 loan is secured through assets of the company.

Charge is a lien /mortgage created on the assets of the company, Or purchase of any property subject to charge, Now,Company Can create charge(security ),Not only when it took loan from Banks and Financial Institution,While also on pledge /Hypothecation and on book debts(Floating Charge), To differentiate that such charge (security) is being created for such purpose or only for securing debenture, Separate forms are required to be filled,and banks/fi don't allow pari passu charge on Debentures on same security (assets of company)

Thank you, Chirag for the explanation. So in case the company takes secyred loan from bank on certain assets, will there be a separate Form CHG-1 and Form CHG-9 filed or only Form CHG-9 will be filed

CHG -9 shall be filed only in case, When company Is creating charge for securing the debentures, In favour of Debenture Trustee, For bank loan (Which is secured) then will file CHG-1....and with Effect from 2.11.18 ( CHG-1/CHG-9 to be filed within 30 days), If delay happens then in next 60 days, if again delay happens In next days 60 days ..Previously it was 300days

Hope it clears to you..
CS CHIRAG

Thanks a lot, Chirag.

 

if suppose A Pvt Ltd issued Debentures and B Pvt Ltd given its land as a security to secure the Debentures issued by the A Pvt Ltd to debenture holder so here which form B Pvt Ltd will file whether CHG-1 or CHG-9?


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