Hypothecation and mortgage of charge

Hi, 

You need to create a seperate charge for hypothecation deed and mortgage deed for the same credit facility availed by the bank. Therefore, you have to file two CHG-1 with ROC i.e. one for hypothecation and another for mortgage.  Hope i am clear.

What's the basis for that?

If this will be done then two charges of Rs. 353 crores will reflect on ROC while the fact is that we are getting from the Lenders only Rs. 353 crores.

From this two charges one can legally interpret that the company had secured or borrowed fund of Rs. 706 Crores.

Other quest If one would have done the mortgage within 30 days of execution of hypothecation, as per Bank discussion we can file the charge in single form only.

Though the documents were not executed as if there is any modification, but in fact this is a mortgage for that charge itself.

Charge should  be filed facility-wise and not document-wise.  Section 79(b) of CA 2013 requires modification in terms & conditions  of charge to be registered.  In this case terms & conditions of earlier charge are modified since additional security is being given to the Bank by way of mortgage for the same facility.  Hence you have to  file modification of charge.

Thank you sir for giving your valuable inputs here. We were registering the charges separately because there will be more modifications in the facility availed by bank in future. so for example if the amount of credit facility is increased then company may not be ready to create further  charge on title deeds (for example) for the increased amount of credit facility. Therefore, for keeping the easy track of charge created on assets charge is created document wise.