Query relating to Creation of Charge

Charge is created on the land of A, so Form-8 relating to registration of creation of charge will file by company A and it will reflect on index of charge on MCA portal of company A.

Regards

Agreed with Mr. Ajay Mishra.

Ofcouse Company A is required to file Form 8, it is the charge on the properties of Company A.

NO form -8 for creation of charge is required to be filled for lease agreement by either party.

Company A does not take any loan/ deposit.

Company A is not under any oblisation to repay any loan.

Company B have the possession of the property.

Lease rent is income of the company A.

Company A is extending its property as security to Company B for availing loan. Company B is getting Loan on the request of Company A which is a sufficient consideration as per the Indian Contract Act. Company A or its property is under the obligation to repay the amount to the lender in case Company B makes default in repayment of loan.

As per Section 125(4)(c) any charge created on any immovable property of the Company should be registered.

Therefore Company A is required to file Form 8

Shyam - Where is that the Company A is extending its property as security to Company B for availing loan?

It's simply said that the company A is leasing its land to company B. It's a simple leasing of property. B is not the owner.  How can he create charge on the property of A? A is the lease owner who will receive lease rentals from B and why should he create any charge?

Agreed ......in question,  A is not extending its propery to B as security and Company B cannot create charge on the properties of A unless the consent of the A is obtained. Had later been the case A is under the obligation to file Form 8

I made some assumptions to the question.

Question needs some more clarity as to what exactly the background is? 

Any other view of the learned members is appreatiated

Hi,

if loan is taken by B t.hen charge will be created by B.

here B is the lessee and it pays money for that to A.

while creating charge, A NOC from Owner A is required. further in form 8 one column is that whether company is owner of the property charged and in that case answer will be no.

if the bank don,t have any problem that company is not the owner but only lessee then charge will be created  by B only.

Thanx

Rajeev