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Limit on amount secured in charges

Others 601 views 3 replies

Kanika Sukheeja

Company Secretary

52 Points Joined July 2008

Dear Friends,

I would like to know if there is any limit on the Amount secured in the filing of charges. that is to say any limit upto which a company can avail the amount on property charged, or it can avail any amount as bank guarantee on the property charged.??

Any Section for this limit (if any).??

Early repl is awaited.

Thanks in advance.

Kanika Sukheeja

Replies (3)

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

Hi,

No there is no such limit. Company can avail any amount as loan on the property charged subject to the realizable value of property. Kindly refer section 125 of the companies act, 1956.

Regards