DECODING MCA SCHEME FOR RELAXATION OF CHARGES
MCA
vide General Circular no. 23/ 2020 dated 17th June, 2020 has issued Scheme
for relaxation of time for filing forms related to creation or modification of
charges under the Companies Act, 2013 for all Companies
Registered with ROC.
· Provisions Related to Filings
i.Section – 77 of the Companies Act 2013
- creation or modification of charges
ii.Timeline: with a period of 120 days of
the creation or modification of charge.
iii.In case failure
under Section 77 (1): (Charge not registered with in 30 days)
the charge holder may file the form related
to creation or modification of charges under section 78 of the Companies Act,
2013 within the overall timelines for filing of such form under section 77.
·
Representation
& COVID-19
Several representation has been made to MCA
on account of COVID-19 outbreak requesting relaxations in the timelines related to filing of certain
charge related forms.
Further, the benefit of waiver of additional
fees was not extended to the charge related documents under the Companies Fresh Start Scheme (CFSS), 2020.
·
MCA
Relaxations on Charge related filings
In
a view of the pandemic situation due to COVID-19 outbreak and Representation
made, Ministry of Corporate Affairs has came out with a new scheme called
"Scheme for relaxation of time for filing forms related to creation or
modification of charges under the Companies Act, 2013"
for the purpose of condoning the delay in filing certain forms related to
creation/ modification of charges.
·
Decoding
Scheme related to Charge Matters
|
Name of the
Scheme
|
Scheme for
relaxation of time for filing forms related to creation or modification of
charges under the Companies Act, 2013
|
|
Purpose
|
condoning the
delay in filing certain forms related to creation/ modification of charges.
|
|
Scheme applicable
(date)
|
17th
June 2020
|
|
Applicability
(Scope)
|
Filing of Form
No. CHG-l and Form No. CHG-9 (both referred as 'form' or 'forms) by a company
or
a charge holder, where
the date of creation / modification of charge:
(a) is before 01.03.2020,
but the timeline for filing such form had not expired under section 77 of the
Companies Act as on 01.03.2020, / or
(b) falls on any
date between 01.03.2020 to 30.09.2020 (both dates inclusive).
|
|
Relaxation of
time
|
1. In case a form
is filed before 01.03.2020, but the timeline for filing such form had not
expired under section 77 of the Companies Act as on 01.03.2020:
a) the period beginning from
01.03.2020 and ending on 30.09.2020 shall not be reckoned for the purpose of
counting the number of days under section 77 or section 78.
b) if the form is not filed within
such period, the first day after 29.02.2020 shall be reckoned as 01.10.2020
for the purpose of counting the number of days within which the form is
required to be filed under section 77 or section 78
2. In case Filing
of Forms falls on any date between 01.03.2020 to 30.09.2020 (both dates
inclusive).
a) the period beginning from the
date of creation/ modification of charge to 30.09.2020 shall not be reckoned
for the purpose of counting of days under section 77 or section 78
b) If the form is not filed within
such period, the first day after the date of creation / modification of
charge shall be reckoned as 01.10.2020 for the purpose of counting the number
of days within which the form is required to be filed under section 77 or
section 78.
|
|
Applicable Fees
|
1. In case a form
is filed before 01.03.2020, but the timeline for filing such form had not
expired under section 77 of the Companies Act as on 01.03.2020:
a) if the form is filed on
or before 30.09.2020 - the fees
payable as on 29.02.2020 under the Fees Rules for the said form shall be
charged.
b) If form filed thereafter
- the applicable fees shall be charged under the Fees Rules after adding
the number of days beginning from 01.10.2020 and, ending on the date of
filing plus the time period lapsed from the date of the creation of charge
till 29.02.2020
2. In case Filing
of Forms falls on any date between 01.03.2020 to 30.09.2020 (both dates
inclusive).
a) if the form is filed on
or before 30.09.2020 - Normal fees
under the Fees Rules for the said form shall be charged.
b) If form filed thereafter
- the First day after the date of creation/modification of charge shall
be reckoned as 01.10.2020 and the number of days till the date of filing of
the form shall be counted accordingly for the purposes of payment of fees
under the Fees Rules.
|
|
Non –
applicability of the Scheme
|
The Scheme shall not apply, in case:
(a)
The forms i.e.CHG-1 and CHG-9 had already been filed before the date of issue
of this Circular.
(b)
The timeline for filing the form has already expired under section 77 or
section 78 of the Act prior to 01.03.2020
(c)
The timeline for filing the form expires at a future date, despite exclusion
of the time provided in sub-para (iii) above.
(d)
Filing of Form CHG-4 for satisfaction of charges.
|
Disclaimer:
IN NO EVENT
THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL
DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS
INFORMATION.
THIS HAS
BEEN SHARED FOR KNOWLEDGE PURPOSES ONLY.
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