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Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013

General Circular No. 23/2O2O

File No.02l05 I 2O2O-CL-V
Government of India
Ministrv of Coroorate Affairs

5fr Floor, A’Wing, Shastri Bhawan,
Dr. R. P. Road, New Delhi-1100O1.
Dated: 17h June.2O2O

To
All Regional Directors,
All Registrar of Companies,
All Stakeholders.

Subject: Scheme for relaxation of time for filing forms related to creation
or modification of charges under the Companies Act, 2O13.

Sir/Madam,

The companies are required to file forms related to creation or
modification of charges within the timelines provided in section 77 of th-e
Companies Act, 2O 13 (Act), i.e. a total o[ 120 days of the creation or modification
of charge. In case, the company fails to register the charge within the period of
thirty days referred to in sub-section ( 1) of secti’on 77 , the charge holder may file
the form related to creation or modification of charses under section 78 of the
| ,- Act, within the overall timelines for filing of such form under section 77.
,/

  1. On account of the pandemic caused by the COVID-19, representations have
    been received in this Ministry, requesting that the timelines related to filing of
    certain charge related forms may be suitably relaxed so as to provide a window
    of compliance for the registration of charges. Under the Companies Fresh Start
    Scheme, 2O2O as laid out in the General Circuiar No. 12 / 2O2O, dated
    3O.O3.2O2O, the benefit of waiver of additional fees was not extended to the
    charge related documents. Therefore, it has been suggested that some
    dispensation may be provided for filing of charge related documents as well.
  2. In view of the above, the Central Government in exercise of its powers under
    section 460 read with section 4O3 of the Act and the Companies (Registration
    Offices and Fees) Rules, 2014 (Fees Rules) has decided to introduce a Scheme,
    namely “Scheme for relaxation of time for filing forms related to creation or
    modification of charges under the Companies Act, 2013″ for the purpose of
    condoning the delay in filing certain forms related to creation/ modification of
    charges.
  1. The details ofthe scheme are as under: –
    (i) The scheme shall come into effect from the date of issue of this Circular.
    (ii) Applicability: The scheme shall be applicable in respect of l-rling of Form No.
    CHG-l and Form No. CHG-9 (both referred as ‘form’or’formsJ by a company or
    a charge holder, where the date of creation / modification of charge:
    (a) is before O1.03.2020, but the timeline for filing such form had not expired
    under section 77 of t}:e Act as on O1.03.2020, or
    (b) falls on any date between 01.O3.2O2O to 3O.O9.2O2O (both dates inclusive).
    (iii) Relaxation of time:
    (a) In case a form is filed in respect of a situation covered under sub-para
    (ii)(a) above, the period beginning from 01.03.2020 and ending on
    3O.O9.2O2O shall not be reckoned for the purpose of counting the number
    of days under section 77 or section 78 of the Act. In case, the form is not
    filed within such period, the first day after 29.O2.2O2O shall be reckoned
    as 01.10.2020 for the purpose of counting the number of days within
    which the form is required to be filed under section 77 or section 78 ofthe
    Act.
    (b) In case a form is filed in respect of a situation covered under sub-para
    (ii)(b) above, the period beginning from the date of creation/ modification
    of charge to 30.09.2020 shall not be reckoned for the purpose ofcounting
    of days under section 77 or section 78 of the Act. In case, the form is not filed within such period, the first day after the date of
    creation / modification of charge shall be reckoned as 01.10.2020 for the
    purpose of counting the number of days within which the form is required
    to be filed under section 77 or section 78 of the Act.
    (iv) Applicable Fees:
    (a) In regard to sub-para (iii)(a) above, if the form is filed on or before
    3O.O9.2O2O, the fees payable as on 29.02.2020 under the Fees Rules for
    the said form shall be charged. If the form is filed thereafter, the applicable
    fees shall be charged under the Fees Rules after adding the number of
    days beginning from 01 . 10.2O2O and, ending on the date of filing plus the
    time period lapsed from the date of the creation of charge till29.O2.2O2O.
    (b) In regard to sub-para (iii)(b) above, if the form is filed before 30.09.2020,
    normal fees shall be payable under the Fees Rules. If the form is filed
    thereafter, the Iirst day after the date of creation/modification of charge
    shall be reckoned as 01.10.2020 and the number of days till the date of
    filing of the form shall be counted accordingly for the purposes of payment
    of fees under the Fees Rules.

(v) The Scheme shall not apply, in case:
(a) The forms i.e.CHG-1 and CHG-9 had already been filed before the date of
issue of this Circular.
(b) The timeline for filing the form has already expired under section 77 or
section 78 of the Act prior to 01.03.2O2O.
(c) The timeline for filing the form expires at a future date, despite exclusion
of the time provided in sub-para (iii) above.
(d) Filing of Form CHG-4 for satisfaction of charges.

  1. This issues with the approval of the Competent Authority.

Yours falthfully,

(KMS Narayanan)

Assistant director ( policy)


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