A charge is a right created by any person, including a company, referred to as 'the borrower', on its assets and properties, present or future, in favour of a financial institution or a bank, referred to as 'the lender'

Section 2(16) of the Companies Act, 2013 defines charge so as to mean an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. Provisions with respect to registration of a Charge are as under: As per the provisions of section 77 of the Companies Act, 2013, It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation. It is further provided that the Registrar may, on an application by the company, allow such registration to be made within a period of three hundred days of such creation on payment of such additional fees as may be prescribed. It is provided further that if registration is not made within a period of three hundred days of such creation, the company shall seek extension of time in accordance with section 87. It is also provided that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered. Where a charge is registered with the Registrar, he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed to the company and, as the case may be, to the person in whose favour the charge is created. Notwithstanding anything contained in any other law for the time being in force, no charge created by a company shall be taken into account by the liquidator or any other creditor unless it is duly registered and a certificate of registration of such charge is given by the Registrar. If company fails to register the charge as per section 77, the person in whose favour charge is created can apply to the Registrar for registration of Charge. (section 78) Modification in charge is also required to be registered so also the existing charge on the property acquired by the company. (section 79) The registration of charge is deemed to be the notice on the person acquiring property. (section 80). Register of Charges is kept by the Registrar in prescribed form. (sec 81)