Section 77 of CA 2013 : Section 77: Duty To Register Charges, Etc

Explanation using Example

Imagine ABC Pvt. Ltd. takes a loan from XYZ Bank and, as security for the loan, the company offers a mortgage on its office building. According to Section 77 of the Companies Act, 2013, ABC Pvt. Ltd. must register this charge (the mortgage) with the Registrar of Companies (RoC).

They must do this within 30 days of creating the mortgage by submitting the necessary documents and details of the charge, along with the required fees. If they fail to register within 30 days, they can still apply for an extension. If the charge was created after the commencement of the Companies (Amendment) Act, 2019, they can apply for an extension of up to 60 more days, but they will have to pay additional fees.

If ABC Pvt. Ltd. still doesn't register the charge within the extended period, the charge may not be considered by the liquidator or any other creditor in case of insolvency unless it is registered later by paying an ad valorem fee. However, the right to repayment secured by the charge remains unaffected.