Charge Registration Under Section 77: A Deadline Most Companies Miss Until It Is Too Late
When a company creates a charge on its assets as security for a loan, Section 77 of the Companies Act, 2013 requires the charge to be registered with the Registrar of Companies within 30 days of its creation, and the obligation rests with the company, not the lender. The window extends on application: 31 to 60 days with additional fees, 61 to 120 days with ad valorem fees, and beyond 120 days the statutory window has expired and the position requires separate legal assessment. Under Section 77(3), an unregistered charge cannot be taken into account by the liquidator or any other creditor, although the underlying debt remains payable under Section 77(4). Companies commonly go wrong by assuming the lender will handle registration, missing the window during restructuring (modifications also require registration under Section 79), overlooking charges on overseas assets, and forgetting that the 30 days run from the creation of the charge, not from the loan agreement or disbursement.
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