Registration and Satisfaction of Charges: Jaiib/DBF Paper 3 (Module B) Unit-13

Registration and Satisfaction of Charges: Jaiib/DBF Paper 3 (Module B) Unit-13

Dear bankers,

As we all know that is Registration and Satisfaction of Charges for JAIIB Exam. JAIIB exam conducted twice in a year. So, here we are Registration and Satisfaction of Charges (Unit-13), Legal Aspects of Banking Operations (Module B), Legal & Regulatory Aspects of Banking -Paper 3.

♦Types of Charges

“Charges” registered under the Companies Act can be classified into two types:

• Fixed Charge: ‘Fixed Charge’ is also called ‘specific Charge’. It extends over a specific property or properties of the company.
• Floating Charge:  A floating charge is a security interest over a fund of changing assets of a company or other legal person. Unlike a fixed charge, which is created over ascertained and definite property, a floating charge is created over property of an ambulatory and shifting nature.

♦Provisions of Law Relating to Registration of Charges

• Section 77, Companies Act 2013: This section provide that ‘charge’ means and includes mortgage/charge over any or all properties of the company within or outside India.
• Section 77(1), Companies Act 2013: This section provides that the charge created over the properties of the company shall be registered with the Registrar of Companies within 30 Days of creation of charge.
• Section 77(2), Companies Act 2013: This section provide that the Registrar shall give a certificate under his hand of the Registration of any charge registered, stating the amounts thereby secured.
• Section 78, Companies Act 2013: This section provides that in case the charges is not registered by the Company, the charge holder may apply for filling of charge in the prescribed manner within a period 14 Days after giving the Company a notice in this regard.
• Section 79, Companies Act 2013: This section provide that if a company acquires a property charged under Section 77, then the company shall declare the same by filling the particulars of the property, so acquired, subject to charge.
• Section 80, Companies Act 2013: This section provides that after registration of charge created, any other person acquiring such property charged or any party thereof, shall be deemed to have notice to the charge registered and shall take property subject to such charge.
• Section 82, Companies Act 2013: This section provide that the Company shall intimate the Registrar of any payment/satisfaction in full of any charge registered within a period 30 days.
• Section 83, Companies Act 2013: Power of Registrar to Make Entries of Satisfaction and Release in Absence of Intimation from Company.
• Section 84, Companies Act 2013: This section provides that in case an order for appointment of receiver or manager is obtained by any person, then such person shall give notice of such appointment of receiver/ manager within a period of 30 days from the date of such order.
• Section 85, Companies Act 2013: This section requires the company shall maintain at its registered office, a register of charges in prescribed form and manner.
• Section 86, Companies Act 2013: This section provides that contravention of any the aforesaid provision shall be punishable with a fine not less than Rs 100000 but which may extend to Rs 1000000 and every officer in default shall be punishable with imprisonment for a term of upto 6 months.
• Section 86, Companies Act 2013: This section provides that the Central Govt may direct that the time for filing charge may be extended upon being satisfied of a few conditions mentioned in the section.

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