[Notification Date: 26.03.2014; Effective from: 01.04.2014]
Section 77- Duty to register charges, etc. [Corresponds to Section 125, 132 of the Companies Act,1956]; [Relevant Rule: 3,4,6 of The Companies (Registration of Charges) Rules, 2014]
(1) 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 - [Rule 3], with the Registrar within thirty days of its creation:
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 - [Rule 4]:
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:
Provided also that any subsequent registration of a charge shall not prejudice any rights acquired in respect of any property before the charge is actually registered.
(2) Where a charge is registered with the Registrar under sub-section (1), he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed - [Rule 6] to the company and, as the case may be, to the person in whose favour the charge is created.
(3) 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 [appointed under this Act or the Insolvency and Bankruptcy Code, 2016] or any other creditor unless it is duly registered under sub-section (1) and a certificate of registration of such charge is given by the Registrar under sub-section (2).
[The words & figures " appointed under this Act or the Insolvency and Bankruptcy Code, 2016" inserted vide Notification No. 37 dated 28.05.2016 (Insolvency and Bankruptcy Code, 2016) read with MCA Notification S.O.3453(E) dated 15.11.2016 with effect from 15.11.2016]
(4) Nothing in sub-section (3) shall prejudice any contract or obligation for the repayment of the money secured by a charge.