NSG Ltd. created a charge in favour of Bank A for a loan it took, and the particulars of the charge have already been registered with the Registrar of Companies. Later, Bank A transferred or assigned this charge to Bank

Registration of Modification of Charge As per section 79 of the Companies Act, 2013: The provisions of section 77 of the Companies Act, 2013, relating to registration of charges shall, so far as may be, apply to - a company acquiring any property subject to a charge within the meaning of that section; or any modification in the terms or conditions or the extent or operation of any charge registered under that section. The term 'modification' includes variation of any of the terms of the agreement including variation of rate of interest, increase / decrease in amount of borrowings, change / swap of security, extension of time for repayment, which may be by mutual agreement or by operation of law. Even if the rights of a charge holder are assigned to a third party, it will be regarded as a modification of charge. Section 79 of the Companies Act, 2013 read with Rule 3 of the Companies (Registration of Charges) Rules, 2014, makes it clear that the requirement of registering the charge shall also apply to a company acquiring any property subject to charge or any modification in terms and conditions of any charge already registered. On assignment of loan from Bank A to Bank B, the charge holder is changed. Hence, as per Section 79 of the Companies Act, 2013 read with Rule 3 of the Companies (Registration of Charges) Rules, 2014, NSG Ltd. is advised to file Form-CHG-1 for registration of modification of charge for change in charge holder.