Chapter 6 REGISTRATION OF CHARGES

Chapter 6 : REGISTRATION OF CHARGES

1. Every company shall be duty bound to register its charges with Registrar of Companies within …………….
Days. 6.1
a. 7 days b. 10 days c. 30 days d. 45 days

2. The Registrar of Companies can allow late registration beyond …………… days but within …………… days
from the date of its creation on payment of additional fees.
a. 7 days, 100 days b. 10 days, 300 days c. 30 days, 300 days d. 45 days, 100 days

3. Where company does not registered the charge within 30 days and holder registered the same before
300 days then the limit of 300 will…………… to the company
a. Apply b. Not apply c. be extended d. None of the above

4. Particulars of charge shall be signed by the Company and the charge holder filed together with the
instrument, if any creating such charge in ………….Form
a. CHG 1 b. CHG 2 c. CHG 4 d. CHG 6

5. The Registrar of Companies shall issue a certificate of registration of charge in …………..Form

a. CHG 1 b. CHG 2 c. CHG 4 d. CHG 6
.
6. ………… charge means charge which is on the specific assets of the company at the time of creation itself.
a. Fixed Charge b. Floating Charge c. Normal Charge d. None of the above

7. A charge which crystallize (becomes fixed) on occurrence of the specific event is called as ……….. charge
a. Fixed Charge b. Floating Charge c. Normal Charge d. None of the above

8. Whether the assets are charged only on tangible assets. True or False.
a. True b. False c. Partly True d. Partly False

9. The provision of section 77 of the Companies Act, 2013 relating to registration of charges shall apply to-
a. a company acquiring any b. any modification in the terms or c. Both a d. None of
property subject to a charge conditions or the extent or operation of and b the
within the meaning of that any charge registered under that above
section section

10. A company shall give intimation of the payment or satisfaction to Registrar of Companies. Such
intimation shall be sent within ……. Days from the date of such payment or satisfaction.
a. 7 days b. 10 days c. 30 days d. 45 days

11. A company shall give intimation of the payment or satisfaction to Registrar of Companies. Such
intimation shall be sent in Form No……….
a. CHG 1 b. CHG 2 c. CHG 4 d. CHG 6

12. On receipt of intimation of the payment or satisfaction, the Registrar of Companies shall issue a notice to
the charge holder requiring him to show cause within such time not exceeding ….. Days as to why the
satisfaction of charge should not be recorded.
a. 7 days b. 10 days c. 14 days d. 45 days

© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

13. Every company shall keep a register of charges in Form No.

6.2
a. CHG 2 b. CHG 5 c. CHG 6 d. CHG 7

14. M/s XYZ Ltd. realized on 3rd November, 2015 that particulars of a charge created on 11th September, 2015
in favour of a Bank were not filed with the Registrar of Companies for registration. Whether company can
take advantage of extended period of 300 days?
a. Yes b. No c. Partly Yes d. Partly No

15. M/s ABC Ltd. is a public limited company, was created a charge on assets of the company on 1st May,
2015. In how many days company shall be bound to register the particulars of its charge with Registrar of
Companies?
a. 7 days b. 10 days c. 30 days d. 45 days

16. While sanctioning working limit, the rate of interest had been fixed at a specified percentage above the
bank rate as notified by the Reserve bank of India. There was a change in the interest rate due to Reserve
Bank of India notification issued later. The Bank insisted on filing a return of modification of charges. Is
the stand of Bank correct?
a. Yes b. No c. Partly Yes d. Partly No

17. Under section 77(1) of the Companies Act, 2013 it shall be the duty of every company creating a charge…
a. within or outside b. on its property or assets or c. Situated in or outside d. All of the
India any of its undertakings India above

18. M/s ABC Ltd. is a public limited company, was made a payment or satisfaction of charge on assets of the
company which was created in 2005. In how many days company shall give intimation of the payment or
satisfaction to the Registrar of Companies?
a. 7 days b. 10 days c. 30 days d. 45 days

19. Where the satisfaction of the charge is not filed within …………..days from the date on which such
payment of satisfaction, the Registrar shall not register the same unless the delay is condoned by the
Central Government.
a. 14 b. 30 c. 60 d. 300

20. Where a company fails to register the charge within the period 30 days, the person in whose favour the
charge is created may apply to the Registrar for registration of the charge within a period of ……….days
after giving notice to the company,
a. 14 b. 30 c. 60 d. 300

21. The register of charges and instrument of charges shall be open for inspection during:
a. Working Hours b. Business hours c. At all times d. 9 a.m. to 5 p.m.

22. The register of charges shall be preserved for………years.

a. 7 b. 8 c. 10 d. Permanently

23. Instrument of charge shall be preserved for a time period of from the date of satisfaction of charge:
a. 5 years b. 7 years c. 8 years d. 15 years

24. Application for registration of charge of debentures is given in which form?

a. CHG-9 b. CHG-2 c. CHG-6 d. CHG-1

© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

25. An interest or lien created on property or asset of a company or its undertaking is known as ………..
a. Debt b. Charge c. Liability d. Hypothecation

26. Satisfaction of charge shall be record by 6.3

a. Company b. Charge holder c. Registrar d. All of the above

27. A person acquiring property shall be deemed to have notice of charge from…………
a. End of 30 days b. Date of application from c. Date acquiring the d. Date of such
charge property registration

28. Charge shall be register if not register in 30 days

a. 300 days of its b. 300 days after completion of c. Anytime since d. Suo moto power of
creation 30 days satisfaction company

29. By whom the charge should be created?

a. Company b. Lender c. Borrower d. Charge holder

30. Which of these charge is an identifiable charge?

a. Floating charge b. Fixed charge c. Hypothecation d. Both a and b

31. Charge shall be registered by……………

a. company b. charge holder c. Registrar d. Both a and b

32. A company shall give Intimation to the Registrar of the payment or satisfaction in full of any charge
within …………..days from the date of such payment or satisfaction.
a. 14 b. 30 c. 60 d. 300

33. If any company contravenes any provision relating to the registration of charges, the company shall be
punishable with fine which shall not be less than ………..rupees but which may extend to …………..rupees.
a. 100000, 1000000 b. 100000, 500000 c. 50000, 1000000 d. 50000, 500000

34. Registrar on receipt of intimation of satisfaction charge, send show cause notice to holder of charge
within………..days.
a. 14 b. 30 c. 60 d. 300

35. Section 87 of the Companies Act, 2013 empowers the…….to make rectification in register of charges.
a. Registrar b. Central Government c. State Government d. All of the above

36. Where the instrument creating or modifying a charge is not filed within a period of ………….days from the
date of its creation the registrar shall not register the same unless the delay is condoned by the Central
Government.
a. 14 b. 30 c. 60 d. 300

37. The Registrar may, on an application by the company, allow registration of charges to be made
within………days of such creation on payment of such additional fees as may be prescribed.
a. 14 b. 30 c. 60 d. 300

© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

38. The time limit for show cause notice shall not exceed………….
6.4
a. 14 days b. 21 days c. 30 days d. 300 days

39. The instrument creating a charge or modification thereon shall be preserved for……….. years from the
date of satisfaction of charge by the company.
a. 7 b. 8 c. 10 d. Permanently

40. If condonation of delay of beyond 300 days then company shall make application to
a. Tribunal b. CG c. Registrar d. Charge older

41. If any company contravenes any provision relating to the registration of charges, every officer of the
company who is in default shall be punishable with imprisonment for a term which may extend to…………
or with fine which shall not be less than Rs…………… but which may extend to Rs……..
a. One year, 3, b. Six months, 25000, c. Three years, 100000, d. Six months, 25000,
50000, 300000 200000 200000 100000

42. 24. Charge shall be registered with the registrar within

a. 300 days of its b. 30 days of its c. 30 days of satisfaction of d. 300 days of satisfaction of
creation creation charge charge

43. Register of charges can be inspected by anyone of free of cost.

a. True b. False c. Partly True d. Partly False

44. Form used for registration of charge other than debentures is:
a. Form CHG-9 b. Form CHG-2 c. Form CHG-5 d. Form CHG-1

45. What is the additional time limit for registration of charge from the date of end of basic time limit?
a. 270 days b. 300 days c. 45 days d. 365 days

46. What is the basic time limit for registration of charge created on a company?
a. 270 days b. 300 days c. 45 days d. 30 days

47. It shall be duty of the company creating a charge within or outside India, to register the particulars of the
charge signed by the company and the charge holder together with the instruments, with the register
within……. Days of creation.
a. 14 b. 30 c. 60 d. 300

48. Time limit for registration of charge by charge holder if charge not registered within 30 days off its
creation is:
a. 14 days b. 21 days c. 30 days d. 60 days

49. Form CHG-2 is for:

a. Certificate of registration of b. Registration of c. Modification of d. Debenture
charge charge charge

50. The particulars of charges maintained by MCA at which portal?

a. www.gst.gov.in b. www.indiangv.in c. www.mca.gov.in/MCA21 d. Both a and b

51. Crystallization is possible in which of these charges?

© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

a. Fixed charge b. Floating charge c. Hypothecation d. Pledge

52. Which of the following is not possible in case of modification?

a. Change in terms and b. Satisfaction of charge c. Pair Paso change d. Change In
conditions agreement. 6.5

53. What is the time limit for preservation of register of charges?

a. 8 years b. Permanently c. 15 years d. 21 years

54. ROC should not give show cause notice to charge holder for satisfaction of charge if it is signed by:
a. Charge holder b. Company Secretary c. Board of directors d. Any one of the above.

55. Which of the following conversion is possible?

a. Fixed charge into b. Floating charge into Fixed c. Both of the above d. No conversion
Floating charge charge is possible

56. What is the time limit for intimation to registrar for satisfaction of charge?
a. 21 days b. 300 days c 30 days d. 45 days

57. Every company shall keep at its registered office a register of charges in form………..
a. CHG-9 b. CHG-2 c. CHG-5 d. CHG-7

58. Expenses occurred by charge holder for registration of charge would be reimbursed from:
a. Own b. Company c. Both company and charge holder d. Mutual understanding of
equally company and charge holder

59. Entries in the register of companies shall be done by:

a. Director b. Company c. Person authorized by Board d. Any one of the above
Secretary

© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

6.6 Answer

1. c (Hint: Section 77(1) of 2. c (Hint: Section 77(1) 3. b (Hint: Section 78 4. a (Hint: Section 77(1) of
the Companies Act, of the Companies of the Companies the Companies Act,
2013) Act, 2013.) Act, 2013.) 2013)
5. b (Hint: Section 77(2) of the 6. a 7. b 8. b (Hint: Section 77(1) of the Companies Act, 2013,
Companies Act, 2013.) the assets are charged on tangible assets as well as
intangible assets.)
9. c (Hint: Section 79 10.c (Hint: Section 82(1) 11. c (Hint: Section 82(1) 12. c (Hint: Section 82(2) of the
of the Companies of the Companies of the Companies Companies Act, 2013.)
Act, 2013.) Act, 2013) Act, 2013.)
13. d (Hint: 14.a (Hint: As per Section 15. c (Hint: As per Section 16. a (Hint: Section 79 of the
Section 77(1) of the Companies 77(1) of the Companies Act, 2013, the term
85 of the Act, 2013, the ROC can Companies Act, 2013, ‘modification’ includes variation
Compani allow late registration Every company shall of any of the terms of the
es Act, beyond 30 days but be duty bound to agreement including variation of
2013) within 300 days from register its charges rate of interest which may be by
the date of its creation with Registrar of mutual agreement or by
on payment of Companies within 30 operation of law.)
additional fees.) Days.)
17. d (Hint: 18.c (Hint: 19. b 20. a (Hint: As per section 78 of the Companies Act, 2013, where a
Section Section company falls to register the charge within the period 30 days,
77(1) of the 82 of the the person in whose favour the charge is created may apply to
Companies Compani the Registrar for registration of the charge along with the
Act, 2013.) es Act, instrument created for the charge, within such time and in such
2013.) form and manner as may be prescribed and the Registrar may, on
such application, within a period of 14 days after giving notice to
the company)
21. b (Hint: The register of 22.d (Hint: The 23. c (Hint: The time limit 24. a (Hint: For
charges maintained by register of charges for preservation of registration of charge
company shall be opened shall be preserved instrument of charge of debenture in Form
for Inspection during for permanently.) after its satisfaction Is CHG 9 is used.)
business hours only.) 8 years.)
25. b (Hint: 26.d (Hint: Charge 27. d(Hint: Charge created on 28. a(Hint: Registration may
According to shall be satisfied property or asset of a be allow the registration
Section 2(16), by company, company is considered to be of charge after 30 days
charge is an registrar charge notice to worldwide at Large of Its creation, but
interest or lien holder.) and any person dealing in It within 300 days of
created on shall be deemed to have creation of creation of
property or asset intimation of it from that charge.)
of a company.) date.)
29. a (Hint: 30.b (Hint: Fixed 31. d (Hint: Charge 32. b (Hint: According to section 82 of the
According to charge is that may be registered Companies Act, 2013, a company shall
companies act, type of by Company and give Intimation to the Registrar In the
it is the duty of charge which Charge holder prescribed form (Form CHG 1), of the
company to is created on himself if Company payment or satisfaction In full of any
register the specific asset is unable to charge registered under this Chapter
charge created and Is easily register it.) within a period of 30 days from the date
on It.) Identifiable) of such payment or satisfaction.)
33. a (Hint: According to 34.a (Hint: The Registrar 35. b (Hint: 36. d (Hint: Where the
section 86 of the shall, on receipt of Section 87 Instrument creating or

© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

Companies Act, 2013, intimation of satisfaction of the modifying a charge is not

if company of a charge, cause a notice Companies filed within a period of 300
contravenes any to be sent to the holder of Act, 2013 days from the date of Its
provision relating to the charge calling upon empowers creation and where the
the registration of him to show cause within the Central satisfaction of the charge is 6.7
charges contained such time not exceeding Governme not filed within 30 days from
under chapter VI Act, 14 days, as may be nt to make the date on which such
the company shall be specified in such notice, as rectificatio payment of satisfaction, the
punishable with fine to why payment or n in Registrar shall not register
which shall not be less satisfaction in full should register of the same unless the delay is
than one lakh rupees not be recorded as charges.) condoned by the Central
but which may extend intimated to the Government.)
ten lakh rupees.) Registrar.)
37. d (Hint: The Registrar may, on 38.a (Hint: The show 39. b (Hint: The instrument 40. b (Hint:
an application by the company, cause notice is creating a charge or Company
allow such registration to be issued for not modification thereon shall shall make
made within a period of three exceeding 14 be preserved for a period an
hundred days of such creation days by the of 8 years from the date of application
on payment of such additional registrar.) satisfaction of charge by to CG.)
fees as may be prescribed.) the company.)
41. d (Hint: According to section 86 42. b (Hint: 43.b (Hint: The register of 44. d (Hint: The
of the Companies Act, 2013, If any Charge shall charges and instrument of form CHG-1
company contravenes any be charges, shall be open for is used for
provision relating to the registered Inspection during business application
registration of charges contained within 30 hours— for
under chapter VI of the Act, every days of Its (a) By any member or registration
officer of the company who is in creation.) creditor without any payment of charge
default shall be punishable with of fees; or other than
imprisonment for a term which (b) By any other person on debentures.)
may extend to six months or with payment of such fees as may
fine which shall not be less than be prescribed, -subject to
twenty-five thousand rupees but such reasonable restrictions
which may extend to one lakh as the company may, by Its
rupees, or with both.) articles, Impose)
45. a (Hint: The 46. d (Hint: 47. b (Hint: It shall be duty of the 48. a (Hint: Sec 77 of
additional The section company creating a charge within or companies act, 2013 states
time limit for 77 of outside India, on its property or that If the company
registration companies assets or any of its undertaking, doesn't register charge
of charge Is act, 2013 whether tangible or otherwise and within 30 days of its
270 days if states that situated in or outside India, to creation, then the charge
charge is not the register the particulars of the charge holder can file an
registered company signed by the company and the application to ROC within
within 30 should charge holder together with the 14 days for registration of
days of its register instruments, if any, creating such its charge.)
creation.) charge charge in such form, on payment of
within 30 such fees and in such manner as may
days of its be prescribed, with the registrar
creation.) within 30 days of creation.)
49. a (Hint: Form CHG- 50. c (Hint: The register of 51. b (Hint: Crystallization 52. b (Hint:
2 is used for charges are maintained by means conversion of Modification can’t
Certificate of ROC at floating charge into be done in case of
registration of www.mca.gov.in/MCA21 fixed charge which is satisfaction of
charge given by website.) only possible in floating charge.)
© CA Darshan D. Khare
 Chapter 6 REGISTRATION OF CHARGES

ROC.) charge.)
6.8
53. b (Hint: The 54. a (Hint: If the satisfaction 55. b (Hint: 56. c (Hint: The company after
register of charges form is being signed by Floating satisfaction of charge should
maintained by the charge holder, then charge can Intimate ROC for such with 30
company should be no show cause notice Is be days from such satisfaction.)
preserved given to ROC for such converted
permanently intimation.) into Fixed
whereas charge but
instrument relating vice versa
to it for 8 years.) is not
possible.)
57. d 58. b (Hint: Expenses incurred by charge 59. d (Hint: The entries in register of
holder for registration of charge would charges of company shall be done by
be reimbursed from the company.) the director of the company or secretary
of the company or any other person
which is authorized by board to do so.)

© CA Darshan D. Khare