Companies Act Chapter VI - Registration of Charges

Chapter architecture

Four controls determine whether security is protected

1. Legal creation

A valid mortgage, hypothecation, pledge, lien, assignment or floating charge must arise under the instrument and property law.

2. ROC registration

Use the correct CHG form within the applicable creation, modification or satisfaction window.

3. Other-law perfection

Stamp duty, property registration, CERSAI, depository and sector requirements remain separate.

4. Continuing records

Maintain certificates, CHG-7, security instruments, lender confirmations and satisfaction evidence.

Registration is not creation: ROC filing publicises the security and protects statutory recognition. It does not convert an invalid or unstamped instrument into a valid charge.

Full statutory register

Sections 77 to 87 - Bare Act and simple decode

Section 77

Duty to register charges

77. Duty to register charges, etc.—(1) It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge- holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation: Provided that the Registrar may, on an application by the company, allow such registration to be made— (a) in case of charges created before the commencement of the Companies (Amendment) Act, 2019, within a period of three hundred days of such creation; or (b) in case of charges created on or after the commencement of the Companies (Amendment) Act, 2019, within a period of sixty days of such creation, on payment of such additional fees as may be prescribed: Provided further that if the registration is not made within the period specified— (a) in clause (a) to the first proviso, the registration of the charges shall be made within six months from the date of commencement of the Companies (Amendment) Act, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies; (b) in clause (b) to the first proviso, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such ad valorem fees as may be prescribed. Provided also that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered: Provided also that this section shall not apply to such charges as may be prescribed in consultation with the Reserve Bank of India. (2) Where a charge is registered with the Registrar under sub-section (1), he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed to the company and, as the case may be, to the person in whose favour the charge is created. (3) Notwithstanding anything contained in any other law for the time being in force, no charge created by a company shall be taken into account by the liquidator appointed under this Act or the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as the case may be, or any other creditor unless it is duly registered under sub-section (1) and a certificate of registration of such charge is given by the Registrar under sub- section (2). (4) Nothing in sub-section (3) shall prejudice any contract or obligation for the repayment of the money secured by a charge.

Simple decode: The company must file creation of a charge within 30 days. For a charge created on or after 2 November 2018, the Registrar may permit filing up to 60 days with additional fee and then a further 60 days with ad valorem fee. A charge filed later does not defeat rights acquired before actual registration. An unregistered charge is generally ignored by a liquidator and creditors, although the underlying debt remains payable.

Practical example: A company mortgages its factory on 1 July. Normal filing is due by 31 July; delayed filing may continue only within the statutory post-2018 windows.

Section 78

Charge-holder's right to register

Protect the lender when the company fails to file.

78. Application for registration of charge.—Where a company fails to register the charge within the period of thirty days referred to in sub-section (1) of section 77 without prejudice to its liability in respect of any offence under this Chapter, the person in whose favour the charge is created may apply to the Registrar for registration of the charge along with the instrument created for the charge, within such time and in such form and manner as may be prescribed and the Registrar may, on such application, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed: Provided that where registration is effected on application of the person in whose favour the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge.

Simple decode: If the company does not register within the initial 30 days, the charge-holder may file the instrument. The Registrar gives the company up to 14 days' notice unless the company files or shows sufficient cause. The lender can recover the filing fees from the company.

Practical example: A bank may file CHG-1 after the borrower ignores repeated requests, preserving the public record of its security.

Section 79

Acquired property and charge modifications

Apply the same registration system beyond original creation.

79. Section 77 to apply in certain matters.—The provisions of section 77 relating to registration of charges shall, so far as may be, apply to— (a) a company acquiring any property subject to a charge within the meaning of that section; or (b) any modification in the terms or conditions or the extent or operation of any charge registered under that section.

Simple decode: Section 77 also applies when a company acquires property already subject to a charge and when the terms, extent or operation of a registered charge change.

Practical example: Increasing a working-capital limit and extending the charge to additional inventory requires modification filing, not merely an internal sanction letter.

Section 80

Constructive notice from registration

Treat the registered charge as public notice.

80. Date of notice of charge.—Where any charge on any property or assets of a company or any of its undertakings is registered under section 77, any person acquiring such property, assets, undertakings or part thereof or any share or interest therein shall be deemed to have notice of the charge from the date of such registration.

Simple decode: A person acquiring the charged property or an interest in it is deemed to know of the charge from the date of ROC registration. Registration supports priority transparency but does not replace title due diligence.

Practical example: A buyer purchasing machinery after its charge is registered cannot normally claim ignorance of the ROC record.

Section 81

Registrar's register of charges

Maintain a public central record.

81. Register of charges to be kept by Registrar.—(1) The Registrar shall, in respect of every company, keep a register containing particulars of the charges registered under this Chapter in such form and in such manner as may be prescribed. (2) A register kept in pursuance of this section shall be open to inspection by any person on payment of such fees as may be prescribed for each inspection.

Simple decode: The Registrar keeps each company's registered-charge particulars electronically. Any person may inspect the register on payment of the prescribed fee.

Practical example: A prospective lender should inspect MCA charge data before assuming that a company's assets are unencumbered.

Section 82

Company to report satisfaction

Remove repaid security interests from the public record.

82. Company to report satisfaction of charge.—(1) A company shall give intimation to the Registrar in the prescribed form, of the payment or satisfaction in full of any charge registered under this Chapter within a period of thirty days from the date of such payment or satisfaction . Provided that the Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period of three hundred days of such payment or satisfaction on payment of such additional fees as may be prescribed. (2) The Registrar shall, on receipt of intimation under sub-section (1), cause a notice to be sent to the holder of the charge calling upon him to show cause within such time not exceeding fourteen days, as may be specified in such notice, as to why payment or satisfaction in full should not be recorded as intimated to the Registrar, and if no cause is shown, by such holder of the charge, the Registrar shall order that a memorandum of satisfaction shall be entered in the register of charges kept by him under section 81 and shall inform the company that he has done so: Provided that the notice referred to in this sub-section shall not be required to be sent, in case the intimation to the Registrar in this regard is in the specified form and signed by the holder of charge. (3) If any cause is shown, the Registrar shall record a note to that effect in the register of charges and shall inform the company. (4) Nothing in this section shall be deemed to affect the powers of the Registrar to make an entry in the register of charges under section 83 or otherwise than on receipt of an intimation from the company.

Simple decode: Full payment or satisfaction is normally intimated within 30 days. The company or charge-holder may file within 300 days with additional fee. The Registrar may issue a show-cause notice to the lender for up to 14 days unless the lender signs the prescribed intimation.

Practical example: After a term loan is fully repaid, the company obtains the lender's confirmation and files CHG-4 rather than leaving the charge shown as open.

Section 83

Registrar's power where company does not intimate

Correct the register on satisfactory independent evidence.

83. Power of Registrar to make entries of satisfaction and release in absence of intimation from company.—(1) The Registrar may, on evidence being given to his satisfaction with respect to any registered charge,— (a) that the debt for which the charge was given has been paid or satisfied in whole or in part; or (b) that part of the property or undertaking charged has been released from the charge or has ceased to form part of the company’s property or undertaking, enter in the register of charges a memorandum of satisfaction in whole or in part, or of the fact that part of the property or undertaking has been released from the charge or has ceased to form part of the company’s property or undertaking, as the case may be, notwithstanding the fact that no intimation has been received by him from the company. (2) The Registrar shall inform the affected parties within thirty days of making the entry in the register of charges kept under sub-section (1) of section 81.

Simple decode: The Registrar may record full or partial satisfaction, or release of part of charged property, even without company intimation when satisfactory evidence is produced. Affected parties are informed within 30 days.

Practical example: A lender that has released one parcel of land may support a Registrar entry even where company records have not been promptly updated.

Section 84

Receiver or manager

Disclose enforcement control over charged property.

84. Intimation of appointment of receiver or manager.—(1) If any person obtains an order for the appointment of a receiver of, or of a person to manage, the property, subject to a charge, of a company or if any person appoints such receiver or person under any power contained in any instrument, he shall, within a period of thirty days from the date of the passing of the order or of the making of the appointment, give notice of such appointment to the company and the Registrar along with a copy of the order or instrument and the Registrar shall, on payment of the prescribed fees, register particulars of the receiver, person or instrument in the register of charges. (2) Any person appointed under sub-section (1) shall, on ceasing to hold such appointment, give to the company and the Registrar a notice to that effect and the Registrar shall register such notice.

Simple decode: Appointment of a receiver or manager under a court order or security instrument must be notified to the company and Registrar within 30 days. Cessation must also be notified.

Practical example: When a debenture trustee appoints a receiver over a charged plant, CHG-6 records both appointment and later cessation.

Section 85

Company's register and instruments

Maintain the internal charge audit trail.

85. Company’s register of charges.—(1) Every company shall keep at its registered office a register of charges in such form and in such manner as may be prescribed, which shall include there in all charges and floating charges affecting any property or assets of the company or any of its undertakings, indicating in each case such particulars as may be prescribed: Provided that a copy of the instrument creating the charge shall also be kept at the registered office of the company along with the register of charges. (2) The register of charges and instrument of charges, kept under sub-section (1) shall be open for inspection during business hours— (a) by any member or creditor without any payment of fees; or (b) by any other person on payment of such fees as may be prescribed, subject to such reasonable restrictions as the company may, by its articles, impose.

Simple decode: Every company keeps CHG-7 at its registered office, covering fixed and floating charges, acquired charged property, modifications and satisfaction. The security instruments are kept with the register and made available for inspection.

Practical example: The charge register should reconcile to loan ledgers, bank confirmations, MCA charge IDs and title documents.

Section 86

Penalties and false information

Penalise non-compliance and fraudulent filings.

86. Punishment for contravention.— (1) If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees. (2) If any person willfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.

Simple decode: The company faces a penalty of ₹5 lakh and each officer in default ₹50,000 for Chapter VI default. Wilfully false or suppressed material information required under section 77 can trigger section 447 fraud action.

Practical example: Deliberately omitting a prior lender from a modification filing can be more serious than a routine late-filing penalty.

Section 87

Rectification by Central Government

Correct genuine satisfaction delays or filing mistakes.

87. Rectification by Central Government in Register of charges.—The Central Government on being satisfied that— (a) the omission to give intimate to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or (b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83, was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.

Simple decode: On proof of accident, inadvertence, sufficient cause or absence of creditor/shareholder prejudice, the Central Government may extend time for satisfaction or rectify an omission or misstatement in an earlier charge, modification or satisfaction filing. The current provision is not a general cure for a post-2018 creation filed beyond the section 77 maximum period.

Practical example: A wrong property survey number in a registered CHG-1 may be corrected through CHG-8 where the statutory conditions are established.

Classification matrix

What normally creates a registrable charge?

Arrangement	Likely Chapter VI result	Control point
Mortgage of land/building	Yes - proprietary security over immovable property.	ROC filing does not replace stamp duty or Registration Act requirements.
Hypothecation of inventory / receivables	Yes - movable assets remain with the company but are charged.	Describe asset class, limit, ranking and floating/fixed character accurately.
Pledge of company-owned securities or goods	Usually yes because a contractual lien/security interest is created.	Check possession, depository instructions and the exact instrument.
Assignment of receivables as security	Usually yes where the assignment secures an obligation.	Distinguish true sale from security assignment.
Lien over fixed deposit / bank account	Often registrable where created contractually as security.	Bank set-off and lien wording should be legally reviewed.
Floating charge over undertaking	Yes.	Track crystallisation events and later pari passu or supplemental security.
Guarantee without asset security	No charge merely because the company guarantees a debt.	Separate Board, related-party and financial-assistance requirements may apply.
Negative lien / covenant not to encumber	Usually not a proprietary charge by itself.	Instrument wording may create stronger rights; obtain legal classification.
Lien arising purely by law	Generally not a charge 'created by the company'.	Contractual enhancement can alter the conclusion.
Retention of title in ordinary supply	Fact-specific; may be ownership reservation rather than charge.	Examine substance, financing features and applicable property law.
Property acquired subject to existing charge	Registrable under section 79.	Use the acquired-property route and preserve the earlier charge evidence.
Modification of amount, assets, ranking or terms	Registrable modification where terms, extent or operation change.	File CHG-1 or CHG-9 against the existing charge ID.

Substance over label: calling a document a “negative lien”, “escrow”, “assignment” or “comfort arrangement” does not decide whether it creates a proprietary security interest.

Current rule register

Registration of Charges Rules - rule by rule

Rule 1

Short title and commencement

The rules are the Companies (Registration of Charges) Rules, 2014.
They came into force on 1 April 2014.

Simple decode: This is the principal procedural rulebook for Chapter VI.

Practical example: Read it with the 2015, 2017, 2018, 2019 and 2022 amendments.

Rule 2

Definitions

Defines Act, Annexure, fees, forms/e-forms, Regional Director and section.
Undefined expressions take their meaning from the Act and the Definition Details Rules.

Simple decode: The Act supplies the meaning of charge, company and officer in default.

Practical example: Fee and ad valorem fee are determined under the Registration Offices and Fees Rules.

Rule 3

Registration of creation or modification

Use CHG-1 for charges other than debentures and CHG-9 for debenture-related charges.
The form and security instrument are signed by the company and charge-holder and filed within 30 days.
Delayed filing follows the current section 77 periods and additional/ad valorem fee structure.
If the charge-holder files, it may recover its filing costs from the company.
Instrument copies are verified by a director, company secretary or authorised charge-holder officer according to asset location.
A narrow 2022 exception applies to a banking-company charge in favour of RBI for the specified RBI Act advance.

Simple decode: The form depends on the secured instrument, not merely the lender type.

Practical example: A secured NCD modification uses CHG-9; a bank mortgage generally uses CHG-1.

Rule 4

Application to Registrar for delayed filing

The Registrar may permit filing after 30 days within the periods specified in section 77.
CHG-1 or CHG-9 is supported by a director/company-secretary declaration that intervening creditor rights are not adversely affected.
Applicable normal, additional or ad valorem fee is paid.

Simple decode: For post-2 November 2018 creation, the practical maximum is generally 120 days.

Practical example: A day-75 filing requires the statutory application and fee; a day-135 creation is not cured by ordinary Rule 4.

Rule 5

Acquired property and modifications

Rule 4 applies, with necessary changes, to acquired property already subject to charge and to modifications under section 79.

Simple decode: Acquisition and modification follow the same delayed-filing logic.

Practical example: A company buying a mortgaged warehouse should not wait for refinancing to update the ROC record.

Rule 6

Certificates of registration

CHG-2 is issued for registration of creation.
CHG-3 is issued for registration of modification.
The certificate is conclusive evidence that Chapter VI registration requirements for that filing were complied with.

Simple decode: The certificate proves registration, not ownership, valuation or priority against every external law.

Practical example: Lenders should retain the certificate with the executed security documents.

Rule 7

Registrar's electronic register

Charge particulars maintained on MCA21 constitute the statutory register.
Any person may inspect it on payment of the prescribed fee.

Simple decode: MCA charge search is a core credit due-diligence step.

Practical example: An old open charge should be investigated rather than assumed to be repaid.

Rule 8

Satisfaction of charge

The company or charge-holder may intimate full satisfaction in CHG-4 within 300 days, with applicable fee.
The Registrar issues CHG-5 after registering satisfaction.

Simple decode: The Act's normal period is 30 days; Rule 8 supports filing up to 300 days with fee.

Practical example: A day-220 satisfaction can still be filed in CHG-4 without first seeking CHG-8 extension.

Rule 9

Receiver or manager

Appointment or cessation of a receiver or manager over charged property is filed in CHG-6.

Simple decode: Enforcement control over assets must be visible on the public record.

Practical example: Cessation should be filed after possession/control is returned.

Rule 10

Company's register of charges

Maintain CHG-7 at the registered office.
Enter creation, acquisition of charged property, modification and satisfaction forthwith.
Entries are authenticated by a director, company secretary or Board-authorised person.
The register is preserved permanently; instruments are preserved for eight years after satisfaction.

Simple decode: CHG-7 is a permanent governance record, not just a filing checklist.

Practical example: Include charge ID, security assets, amount, ranking, dates and satisfaction details.

Rule 11

Inspection

Members and creditors inspect the register and instruments without fee.
Other persons inspect on payment of fee, subject to reasonable article restrictions.

Simple decode: Inspection rights support creditor and member transparency.

Practical example: Do not deny a creditor access merely because the company regards the security documents as confidential.

Rule 12

Rectification and delayed satisfaction

CHG-8 is used to seek rectification of an omission or misstatement in a prior charge, modification or satisfaction filing.
CHG-8 is also used to seek extension where satisfaction was not filed within 300 days.
The applicant must establish the section 87 conditions.

Simple decode: Current CHG-8 is not a general route for a newly created post-2018 charge filed after 120 days.

Practical example: Use CHG-8 for a wrong asset description or a satisfaction delayed beyond 300 days.

Rule 13

Signing during CIRP or liquidation

For a company under resolution or liquidation, CHG-1, CHG-4, CHG-8 and CHG-9 are signed by the insolvency resolution professional, resolution professional or liquidator, as applicable.
This rule was inserted on 29 August 2022.

Simple decode: The authorised insolvency office-holder replaces ordinary management for these forms.

Practical example: A suspended director should not sign CHG-4 during CIRP where the RP is the prescribed signatory.

Statutory clock

Creation, modification and satisfaction windows

Event	Current position
Creation / modification - normal	30 days from creation or modification.
Post-2 Nov 2018 - first delayed window	Up to 60 days from creation with additional fee.
Post-2 Nov 2018 - final delayed window	Further 60 days, generally up to 120 days total, with ad valorem fee.
Pre-2 Nov 2018 transitional charge	Historic 300-day / six-month transitional framework; the special period is now spent.
Charge-holder filing	Available after company fails to register within the initial 30 days; ROC gives up to 14 days' notice.
Full satisfaction - normal	30 days from full payment or satisfaction.
Full satisfaction - delayed	CHG-4 may be filed up to 300 days with additional fee.
Satisfaction beyond 300 days	CHG-8 extension under section 87.
Receiver or manager appointment	Notice within 30 days of order or appointment.
Internal register entry	Forthwith after creation, modification or satisfaction.
Instrument preservation	Eight years after satisfaction; CHG-7 register permanently.

Historical transition: the special treatment for charges created before 2 November 2018 is included for legacy records. It should not be used as the deadline for a new charge.

Forms and evidence

Primary filing matrix

Form / evidence	Purpose	Legal link
CHG-1	Creation or modification of charge other than debentures	Sections 77-79; Rules 3-5
CHG-2	ROC certificate of registration of charge	Section 77(2); Rule 6
CHG-3	ROC certificate of registration of modification	Section 79; Rule 6
CHG-4	Full satisfaction of registered charge	Sections 82-83; Rule 8
CHG-5	ROC memorandum/certificate of satisfaction	Sections 82-83; Rule 8
CHG-6	Appointment or cessation of receiver or manager	Section 84; Rule 9
CHG-7	Company's permanent register of charges	Section 85; Rule 10
CHG-8	Rectification or extension for satisfaction beyond 300 days	Section 87; Rule 12
CHG-9	Creation or modification of debenture-related charge	Sections 71 and 77-79; Rule 3
Security instrument	Mortgage, hypothecation, pledge, assignment, trust deed or supplemental deed	Primary evidence attached to CHG filing
CERSAI filing	Separate central security-interest registration where SARFAESI/CERSAI law applies	Does not replace ROC registration
Property registration / stamp evidence	Registration Act and State stamp compliance for immovable-property instruments	Separate from Companies Act filing

CIRP and liquidation: Rule 13 requires the IRP, RP or liquidator to sign CHG-1, CHG-4, CHG-8 and CHG-9 for a company under resolution or liquidation.

Exceptions and highlights

Non-negotiable points

An unregistered charge generally loses recognition against the liquidator and other creditors, but the secured debt itself does not disappear.
ROC registration does not replace stamp duty, Registration Act, CERSAI, depository, land-record or sector-specific perfection.
For post-2 November 2018 charges, ordinary Registrar filing generally ends at 120 days; section 87 is not a universal creation-delay cure.
Delayed registration cannot prejudice rights acquired over the property before actual registration.
Modification includes changes in terms, extent or operation - not only an increase in loan amount.
Property acquired subject to charge must be registered even though the company did not create the original security.
CHG-4 is for full satisfaction; partial release or restructuring may require modification or Registrar action under section 83 depending on facts.
Company and lender should independently track ROC charge IDs, filing SRNs and certificates.
CHG-7 must reconcile with debt ledgers, lender confirmations, asset records and financial-statement security disclosures.
Section 86 is now a civil penalty provision, while wilful false information or suppression can invoke section 447.
Rule 3(5)'s RBI exception is narrow and applies only to the specified banking-company charge in favour of RBI.
Rule 13 places charge-form signing with the IRP, RP or liquidator during resolution or liquidation.

Finin2min summary

Registration-of-charges decision map

CA / CS / finance professional cases

Applied case studies

1. Charge filed on day 75

A company creates a mortgage on 1 April and submits CHG-1 on day 75.

Analysis: The filing is outside 60 days but within the further 60-day window. It requires the prescribed application, declaration and ad valorem fee.

2. Charge discovered on day 140

A post-2 November 2018 hypothecation charge is first discovered 140 days after creation.

Analysis: The ordinary section 77 filing window has expired. Current section 87 does not provide a general creation-delay condonation route; legal and lender priority consequences require immediate advice.

3. Bank files after borrower defaults to file

The company does not file CHG-1 within 30 days despite the lender's reminders.

Analysis: Section 78 permits lender-led filing. The Registrar gives the company up to 14 days to file or show cause, and the lender can recover filing fees.

4. Facility amount increased without modification

A working-capital limit rises from ₹20 crore to ₹40 crore and additional receivables become security, but the old charge remains unchanged on MCA.

Analysis: The terms, extent and operation changed. A modification in CHG-1 should be filed against the existing charge ID.

5. Company buys mortgaged warehouse

A company acquires a warehouse subject to the seller's existing mortgage.

Analysis: Section 79 applies even though the company did not create the original mortgage. The acquired charged property must be registered.

6. CERSAI completed but ROC omitted

A bank registers the mortgage with CERSAI but neither party files CHG-1.

Analysis: CERSAI and ROC are separate perfection systems. CERSAI registration does not cure Companies Act non-registration.

7. Unregistered security during liquidation

The lender has an executed hypothecation deed but no ROC certificate when liquidation begins.

Analysis: Section 77(3) places the lender's secured recognition at serious risk against the liquidator and creditors, although the debt obligation remains.

8. Satisfaction filed on day 220

A loan is repaid and CHG-4 is filed 220 days later with lender confirmation.

Analysis: Rule 8 permits filing within 300 days with applicable additional fee; CHG-8 extension is not yet necessary.

9. Satisfaction filed after 420 days

A repaid charge remains open for fourteen months.

Analysis: The company or interested person should seek section 87 extension through CHG-8 and then complete the satisfaction process.

10. Receiver appointed under debenture trust deed

A debenture trustee appoints a receiver over the charged plant after default.

Analysis: Appointment is notified within 30 days in CHG-6. Cessation must also be filed when the appointment ends.

11. Wrong survey number in registered charge

The registered CHG-1 describes plot 118 instead of plot 181, while the mortgage deed is correct.

Analysis: CHG-8 rectification may be sought by showing inadvertence and absence of creditor/shareholder prejudice.

12. Company enters CIRP

A charge modification is required after the interim resolution professional takes control.

Analysis: Rule 13 requires CHG-1 or CHG-9 to be signed by the IRP/RP rather than suspended management.

Exam and implementation traps

Common errors

Treating a guarantee without asset security as a registered charge.
Assuming every negative-lien clause is automatically registrable or non-registrable without reading the instrument.
Using the old 300-day creation window for a new post-2018 charge.
Expecting CHG-8 to cure a post-2018 creation filed after 120 days.
Registering CERSAI but omitting ROC filing.
Filing the original charge but not later limit, ranking or collateral modifications.
Ignoring property acquired subject to an existing charge.
Leaving repaid charges open on MCA records.
Using CHG-4 for a restructuring that is actually a modification.
Failing to preserve CHG-2, CHG-3 or CHG-5 certificates.
Keeping CHG-7 only as a spreadsheet without authenticated statutory entries.
Failing to notify appointment or cessation of a receiver.
Allowing suspended directors to sign forms during CIRP contrary to Rule 13.
Assuming ROC registration cures stamp-duty or instrument-validity defects.
Suppressing material security information and treating the issue as only a late-fee matter.

Finin2min Q&A

Frequently asked questions

1. What is a charge?

An interest or lien created on company property, assets or undertakings as security, including a mortgage.

2. Is every guarantee a charge?

No. A guarantee without proprietary security does not itself create a charge.

3. What is the normal creation-filing deadline?

Thirty days from creation or modification.

4. How late can a post-2 November 2018 charge generally be filed?

The statutory windows generally extend to 120 days in total, with additional and then ad valorem fees.

5. Can CHG-8 cure creation filing after 120 days?

Current section 87 and Rule 12 are not a general condonation route for post-2018 creation delay.

6. Can the lender file the charge?

Yes, after the company fails to file within the initial 30 days, under section 78.

7. When is CHG-4 used?

For full payment or satisfaction of a registered charge.

8. What if satisfaction is filed after 300 days?

Seek extension under section 87 through CHG-8.

9. Does ROC registration replace CERSAI or mortgage registration?

No. Each perfection and registration system must be separately complied with.

10. Who signs charge forms during CIRP or liquidation?

The IRP, RP or liquidator for CHG-1, CHG-4, CHG-8 and CHG-9, as applicable.

Primary-source register

Sources used

India Code - Companies Act, 2013Primary or authoritative source.Open source ↗

India Code - Companies (Registration of Charges) Rules, 2014Primary or authoritative source.Open source ↗

India Code - Companies (Registration of Charges) Amendment Rules, 2017Primary or authoritative source.Open source ↗

India Code notification register - Charges Rules amendments through 2022Primary or authoritative source.Open source ↗

Official amendment status - G.S.R. 320(E), 27 April 2022Primary or authoritative source.Open source ↗

Official amendment status - G.S.R. 664(E), 29 August 2022Primary or authoritative source.Open source ↗

Review date: 26 June 2026. India Code's notification register was checked for later amendments; the latest identified amendment to this rule set is dated 29 August 2022.