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Query related creation of charge

Companies Act 2013 390 views 3 replies

sunitashaw

Company Secretaries

76 Points Posted on 20 August 2015

Dear Sir :

We are an Automobile Car dealership of a leading brand, For purchase of our Car stock we have got an INF (Inventory Funding facility) from a financier (say X) & cars brought from the manufacturer are through the financier. (thus all are stock in trade cars are hypothecated to The Financier,X). Now, we are using our Stock in trade cars for Demo purpose & thus getting another loan from a financier on the same. Now, do we have to file a charge against the 2nd loan also (as for the 1st INF facility, Charge has been created on my whole stock value)

kindly help

Replies (3)

prakash

Company Secretary

1352 Points Posted on 21 August 2015

Suni,

Yes, your company has to creat charge on 2nd loan too but before than that, your company need to get no objection from first chargeholder to create charge on same assets.

sunitashaw

Company Secretaries

76 Points Posted on 21 August 2015

Thanks for your reply.
We are getting another loan from a same financier.One thing i want to know that demo car are getting registered with Public Vehicle Department are treated as assets and cars which are not registered are treated as stock, so is there any connection with creation of Charge and registration of car because charge is created on assets.

prakash

Company Secretary

1352 Points Posted on 21 August 2015

It is duty of every company creating charge on its property or assets or any of its undertakings, whether tangible or otherwise to register the particulars of the charge with the Registrar.