As per the Companies Act, 2013, all types of charges created by a company are to be registered with the Registrar of Companies. Non-filing the particulars of charges would invalidate the charge so created. Discuss.

Under Section 77 of the Companies Act, 2013, every company creating a charge shall register the particulars of charge signed by the company and its charge - holder together with the instruments creating. Important points in the Act relating to charge creation: Any charge created within or outside India; On property or assets or any of the company's undertakings; Whether tangible or otherwise, situated in or outside India shall be registered. Hence all types of charges are required under the Act to be registered whether created within or outside India. The statement that non filing the particulars of charges would invalidate the charge so created is not correct in view of the fact that according to Section 77 of the Companies Act 2013, all types of charges created by a company are to be registered with the Registrar of Companies. Where there is non-compliance and charge is not filed with the Registrar of Companies for registration, it shall be void against the liquidator and any other creditor of the company. In the case of 'ONGC Ltd. Vs Official Liquidator of Ambica Mill Co. Ltd. (2006) 132 Comp. Cas. 606 (Guj.)', the ONGC had not been able to point out whether the so called charge, on the basis of which it was claiming preference as a secured creditors was registered or not. In the light of the failure to register the charge, ONGC could not be treated as a secured creditor. This does not, however, mean that the charge is altogether void and the debt is not recoverable. So long as the company does not go into liquidation, the charge is good and may be enforced. In such circumstances, the liquidator on winding up of the company can ignore the charges and can treat the concerned creditor as unsecured creditor. The property shall be treated as free of charge i.e. the creditor cannot sell the property to recover its dues. Further if any subsequent charge is created and the earlier charge is not registered, the earlier charges would not have any consequences and the latter charge if registered would enjoy priority and the latter charge holder can have the property sold in order to recover its dues as secured creditors. Thus non-filing of particulars of charge does not invalidate charge against the company as going concern, it is void only against the liquidator and the creditor at the time of liquidation. ('Independent Automatic Sales Ltd. Vs. Knowles & Foster. (1962) 32 Comp. cas.')