Chap 7 Mortgage And Charges

Question 1

Security - types

Answer 1

Pledge
Mortgage
Charge

Question 2

Pledge

Answer 2

Type of security: Movable property
Possession: Lender
Example: Loan against inventory

Question 3

Mortgage

Answer 3

Type of security; immovable
Possession: borrower but title documents transferred to lender
Example: loan against property

Question 4

Charge

Answer 4

Type of security: Movable and immovable
Possession: borrower
Example: loan against recoverable and current assets

Loan agreement ki registration in commission and registrar

Question 5

Fixed charge

Answer 5

Specific property kis jaga pe)
1. On specific identifiable assets
2. Present assets
3. Company cannot dispose
4. Priority rights in winding up

Question 6

Floating charge

Answer 6

1. On class of assets
2. Present or future assts
3. Company can dispose, new assets will be automatically charged
4. Subordinate rights in winding up

Question 7

Pledge, mortgage or charge required to be registered with registrar

Answer 7

1. On any movable property of the company
2. On any immovable property wherever situation
3. On book debts of the company
4. On the property or undertaking of the company including stock in trade
5. On goodwill or any intellectual property
6. On a ship or aircraft or any share in a ship or aircraft
7. For issuance of debentures
8. For issuance of any instrument in nature of redeemable capital
9. On conditional sale agreements for acquisition of property
   (E.g lease financing, hire purchase , sale and lease back)
   Negotiable instruments issued to secure debt is NOT required to be registered

Question 8

Rectification of charge

Answer 8

If not filed or erroneously filed
1. Apply to commission
2. Comission is satisfied that;
Error was unintentional
Error was not harmful to creditor/members
Just and equitable
3. Commission may order for ;
Extension in time of filing
Rectification
Cost
4. Copy of order to registrar within 7 days

Delayed charged will not affect previous rights

Question 9

Satisfaction ?

Answer 9

-Means debt is paid
Or settled
-Debt/charge may also be satisfied partially

Question 10

Procedure for registration of satisfied of debt/charge

Answer 10

Duty of company
-within 30 days of satisfaction
-file prescribed particulars of satisfaction
-to registrar

Question 11

Duty of registrar

Answer 11

Send notice to lender and aloe him 14 days to object (not required if NOC is filed)
No objection- register satisfaction
Objection- communicate company

Question 12

Special rights of registrar -satisfaction of debt

Answer 12

Without intimation from company
Can register satisfaction
If evidence is shown to him and he is satisfied that
Debt is paid
Property is released
Property is no more of company

Question 13

Register of mortgage and charge
Where kept?

Answer 13

At registered office along with
Copies of instrument
+ modification

Question 14

Who can inspect- register of mortgage and charge

Answer 14

Creditors/members (without fee)
Other persons (on payment of fee)

Question 15

Refusal of inspection

Answer 15

Go to registrar
It is offence
Penalty of level 1
Registrar may order inspection