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Relaxation of time for Filing forms related to creation or modification of charges

Relaxation of time for Filing forms related to creation or modification of charges

Due to the current situation of the COVID-19 pandemic, the Central Government has, in exercise of its powers under the Companies Act, 2013, decided to allow relaxation of time and condone the delay in filing forms relating to creation/modification of charges vide MCA Circular No. 7/2021 dated 03-May-2021. In terms of the provisions of Section 77 of Companies Act, 2013 e-form CHG-1 and e-form CHG-9 relating to creation and modification of charges are required to be filed within a period of 120 days from date of creation or modification, as the case maybe.

The following creation or modification of charges are eligible under this scheme of relaxation:

CASE I: If the date of creation or modification of charge is before 01st April, 2021 but the timeline for filing of such form had not expired as on 01st April, 2021

Relaxation in timeline:

The period beginning from 01st April, 2021 and ending on 31st May, 2021 shall not be reckoned for the purpose of counting the no. of days for filing of form under Section 77 or Section 78 of the Companies Act, 2013.

In other words, in case the form is not filed up to 31st May, 2021, the first day after 31st March, 2021 shall deemed to be 01st June, 2021 for the purpose of calculating the number of days within which the form is required to be filed under Section 77 or Section 78 of the Companies Act, 2013.

Applicable Fee:

Sl. No.

Particulars

Criteria of Applicable Fee

1.

If e-form CHG-1 or CHG-9 is filed on or before 31st May, 2021

Fee payable as on 31st March, 2021 would be payable

2.

If e-form CHG-1 or CHG-9 is filed after 31st May, 2021

Fee shall be charged taking into account no. of days commencing from 1st June, 2021 till actual date of filing of e-form CHG-1 or CHG-9 plus the days from creation of charge till 31st March, 2021

CASE II: If the date of creation or modification of charge falls between 01st April, 2021 to 31st May, 2021 (both dates inclusive)

Relaxation in the timeline:

The period beginning from 01st April, 2021 and ending on 31st May, 2021 shall not be reckoned for the purpose of counting the number of days for filing of form under section 77 or section 78 of the Companies Act, 2013.

In case form is not filed till 31st May, 2021 then 01st June, 2021 shall be the first day to count 120 days under section 77 or section 78 of the Companies Act, 2013.

For example: Charge is created/modified on 04th April, 2021, the period of 30 days for filing of form shall be calculated from 01st June, 2021.

Applicable Fee:

Sl. No.

Particulars

Criteria of Applicable Fee

1.

If e-form CHG-1 or CHG-9 is filed before 31st May, 2021

Normal fee would be payable i.e. without any additional fee

2.

If e-form CHG-1 or CHG-9 is filed after 31st May, 2021

Fee shall be charged taking into account no. of days commencing from 1st June, 2021 till actual date of filing of e-form CHG-1 or CHG-9

Exclusions:

  • The e-forms CHG-1 and CHG-9 had already been filed before 03rd May, 2021.
  • The timeline for filing the form under Section 77 and 78 of the Companies Act, 2013 i.e., 120 days has already expired prior to 1st April, 2021.
  • The additional timeline provided as aforesaid for filing of e-form CHG-1 and e-form CHG-9 expires at a future date.
  • Filing of e-form CHG-4 for satisfaction of charges.

 

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