Application for registration of charge
📚 Law Minded summary
If a company does not register a charge it created, the lender does not have to wait and lose its security.
The person in whose favour the charge was made can apply to the Registrar and register it themselves, and recover the cost from the company.
The Registrar gives the company fourteen days to object first.
Where a company fails to 3[register the charge within the period of thirty days referred to in sub -section (1) of section 77] without prejudice to its liability in respect of any offence under this Chapter, the person in whose favour the charge is created may app ly to the Registrar for registration of the charge along with the instrument created for the charge, within such time and in such form and manner as may be prescribed and the Registrar may, on such application, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed: Provided that where registration is effected on application of the person in whose favour the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge.