Charges – Test 1

The company’s instrument creating a charge or modification thereon shall be preserved for a period of years
from the date of satisfaction of charge by the company.

On receipt of intimation of satisfaction of charge, the registrar issues a notice to the holder calling a show cause
within such time not exceeding __ days as to why payment or satisfaction in full should not be regarded as
intimated to the Registrar

The register of charges and instrument of charges, shall be open for inspection during

Any person acquiring property (on which charge is registered under section 77) shall be deemed to have notice
of the charge from:

An interest or lien created on the property or assets of a company or any of its undertakings or both as security
is known as:

A charge was created on assets of Pram Limited. Such charge is registered on 12th November, 2018. Any person
acquiring such assets shall be deemed to have notice of the charge: (Give your answer as per the provisions of
the Companies Act, 2013)

The term ‘charge’ is defined as an interest or lien created on the property or assets of a company or any of its
______ or both as security and includes a ________

Where a company creates a charge on any of its assets, it shall be the duty of the company to register such charge
with the Registrar within _____ of its creation

Where a charge is not registered within the stipulated time period, the company may make an application to the
Registrar for condonation of delay. The Registrar may allow the registration of the charge within _____ of
creation of charge

For registration of charge the particulars of the charge together with a copy of the instrument, if any, creating
the charge in Form No. _______ (for other than Debentures) or Form No. ______ (for debentures) shall be
filed with the Registrar.

Where a charge is registered with the Registrar, the Registrar shall issue a certificate or registration of such
charge in Form No. ______

Where the particulars of modification of charge is registered, the Registrar shall issue a certificate of
modification of charge in Form No. _______

The Registrar shall keep a register of charges which shall be open to inspection by ______ on payment of fee

Where a registered charge is paid or satisfied in full, the company shall, within ______, give an intimation to
the Registrar

Where a registered charge is paid or satisfied in full, but the company does not give to the Registrar an intimation
of such payment or satisfaction within the stipulated time period, the company or the charge-holder may make
an application to the Registrar for condonation of delay. The Registrar may allow such intimation of payment or
satisfaction to be made within ________ of such payment or satisfaction.

If the property charged _______, the Registrar may record the satisfaction of charge in the register of charges
maintained by him notwithstanding the fact that no intimation of satisfaction of charge has been given to him
by the company.

If a person appointed as a receiver or manager ceases to hold his office, he shall give a notice of such fact to
_______.

Every company shall keep at its registered office a register of charges in Form No. _______

The register of charges maintained by the company shall be preserved ________.

The instrument creating a charge or modification thereon shall be preserved by the company for a period of 8
years from the date of _______ of charge.

If there is omission or mis-statement of any entry required to be entered in the register of charges and _____
is satisfied that it was accidental or due to inadvertence or due to some other sufficient cause, or it is just and
equitable to grant relief, it may make an order for rectification of register of charges.

The application for condonation of delay in filing particulars of creation or modification or satisfaction of charge
shall be filed in Form No. ______.

Statement (1): A specific charge is created on a class of assets, present as well as future.
Statement (2): A floating charge is created on some identifiable property of the company.

A floating charge crystallizes into a fixed charge if _______

Statement (1): A company can even create a fixed charge on the property already subject to floating charge
without consent of the charge holders.
Statement (2): Permission of money lender is not required for disposing an asset subject to floating charge or
converting it into some other assets.

Statement (1): A charge created by operation of law or created by an order or decree of the Court on the aforesaid
item requires registration.
Statement (2): If a company fails to register any charge within 30 days of its creation, the charge holder may
make an application to the Registrar for registration of charge.

Statement (1): Date of Notice of Charge shall be the date of registration of the charge.
Statement (2): Unregistered charge holder shall have the rights lesser than registered chargeholdee but higher
than unsecured creditors

Statement (1): Change in interest rate including due to change in Bank Rate of RBI constitutes modification.
Statement (2): The particulars of charges maintained on the Ministry of Corporate Affairs portal (www.
mca.gov.in/MCA21) shall be deemed to be the register of charges for the purposes of section 81 of the Act.

Statement (1): Partial release of the charge on a particular assets or property does not constitute modification.
Statement (2): Part payment or satisfaction requires intimation to the Registrar

Statement (1): Entries in the register shall be authenticated by a director or the secretary of the company or any

other person authorised by the Board for the purpose.
Statement (2): The application for condonation of delay shall be filed with the Tribunal along with the fee.