Under section 25 forms registration of charge and a notice to whoever needs a future interest in the assets of charged. The individuals are close to these needs for a charge is created by the company which is matter to a charge within 30 days of the assets of the property.
The only result is that the security formed by the mortgage or charge is invalid against the fiduciary and other creditors. The company is against the charge or mortgage is good and may be executed but the company is not involved in fiduciary. The failure to register does not work any obligation or contract for repayment of money obtained by the charge. The company don’t have any reason of action is occurring out of a charge of non-registration.
Conclusive nature of the certificate of registration
Allotting with the certain nature of the certificate of registration is provided by the registrar. Then the registrar has got the individuals and the instrument making the charge, he is to enter in the register and not the individuals are provided by the company. However, the instrument date and its description, the amount is gained, short individuals of the charged or property mortgaged. The result of the governance as it shows to me is which the document sent for registration and it does not include a charge on individual property.
Consequences of non-registration
If a charge which needs company registration under section 125 is not registered as per sub-section (1) of section 125, the results are as follows:
The charge will be null as against the fiduciary (if the company goes into fiduciary) and against creditors.
The charge is great against the company and the total becomes immediately payable.
The company may provide a subsequent quality bond to get the same debt. However, if a subsequent creditor, even with observe of the charge is first and consider a registered charge before the first said charge is registered.
During termination the charge holder (creditor) acquires the terms of an unsecured creditor, as the charge is void against creditors and liquidator.
But, a security becomes null by non-registration, it does not decide the obligation or contract of the company to repay the money is engaged. In fact, section 125 specifies that a charge becomes invalid by non-registration. The money becomes quickly payable and the company cannot reject it on the ground of non-registration.
Exclusion to register individuals of charges as compulsory punishable with fine. Every officer and the company or other person who is also punishable with fine which is not increased to Rs.5000. The company and every officer for other fails relating to the registration of charges.
Who should effect registration?
To authorize the registrar to create an entity relating to a charge, it is mostly the duty of the company to send to the registrar the required particulars, however if anybody focused in the charge which needs registration is at freedom to do it and improve the company the cost caused thereon. The form No.8 and 13 is managed by the charge-holder and the company.
Company’s Register of Charges
All company is need to keep at its registration office a register of total charges also containing mortgages. It is particularly changing the company property and entire charges. Additionally, all company must keep at its registration office with a copy of each instruments makes any other charges.
Registrars Register of Charge
The registrar with approval to every company makes to be kept a register including all the charges needs registration. The payment on the specified fee, need to enter in the register with favour to all such charge on the following particulars:
- The creation date
- An amount is fixed by the charge
- The person is allowed to the charge
- Short particulars of the property is charged
In the case of a charge of the aid of which the holders of a series of debentures are allowed, the particulars to be entered in the register are:
- The entire amount is fixed by the whole series.
- A common description of the property is charged.
- The trustee names, if any, for the debenture holders
The register is also open to examination by anyone on payment of Rs.10 for each inspection during business hours. A company is need to submit to the Registrar the statutory form with its certified copy of instrument of charges, that will be submit after registration on with a certificate of registration in Bangalore location.