Sourav, Soumyadip, Sucharita and Sohini are four directors of Supershine Detergents Ltd. They decided to convene a meeting on 20th February, 2025 to discuss, consider and solve some issues the company is facing in the co

CS Executive · Company Law and Practice · PYQS · June 2025
Sourav, Soumyadip, Sucharita and Sohini are four directors of Supershine Detergents Ltd. They decided to convene a meeting on 20th February, 2025 to discuss, consider and solve some issues the company is facing in the corporate secretarial compliances since few days. As there is no qualified Company Secretary at present in the company, they invited you, as a practising Company Secretary in the meeting, to take you valued views on the divergent issues and move forward accordingly. Before conclusion of the meeting all the four directors jointly raised the topic of creation of charge on assets of the company for the loan taken from State Bank of India for ₹4 Crore for the purchase of raw materials keeping security of company immovable property. They maintained their understanding that copy of every instrument evidencing any creation of charge is required to be filed with Registrar of Companies. However, the board members are confused over certain aspect of the matter and sought clarity on the matter. Based on the above facts and integrated case, referring to the provisions of Companies Act, 2013, answer the following: (e) Advise the directors how the instruments evidencing creation of charge to be filed with Registrar is verified.

Answer & Explanation:

As per rule 3(4) of the Companies (Registration of Charges) Rules, 2014, a copy of every instrument evidencing any creation or modification of charge required to be filed with the Registrar in pursuance of section 77, 78 or 79 of the Companies Act, 2013 shall be verified as follows: (a) where the instrument or deed relates solely to the property situated outside India, the copy shall be verified by a certificate issued either under the seal, if any, of the company, or under the hand of any Director or Company Secretary of the company or an authorised officer of the charge holder or under the hand of some person other than the company who is interested in the mortgage or charge; (b) where the instrument or deed relates, whether wholly or partly, to the property situated in India the copy shall be verified by a certificate issued under the hand of any Director or Company Secretary of the company or an authorised officer of the charge holder. The Board members are advised on the above lines.

Topics: Registration of Charges

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