Companies Act Section 78 — Application for registration of charge
CHAPTER VI REGISTRATION OF CHARGES
Commercial / Corporate
Summary
If a company fails to register a charge within the thirty-day period mentioned in section 77, the person in whose favour the charge is created (such as a lender) may apply to the Registrar to register the charge. This application must include the instrument that created the charge, and must be made within the time, and in the form and manner, that is prescribed. The company remains liable for any offence under this Chapter even if this application is made.
On receiving such an application, the Registrar may allow the registration within fourteen days, but only after giving notice to the company. The Registrar will allow registration unless the company itself registers the charge, or the company shows sufficient cause why the charge should not be registered. Registration is allowed on payment of the prescribed fees.
If registration is done on the application of the person in whose favour the charge is created, that person is entitled to recover from the company the amount of any fees or additional fees that he paid to the Registrar for the purpose of registering the charge.
Official Text
Where a company fails to 3[register the charge within the period of thirty days referred to in sub-section (1) of section 77] without prejudice to its liability in respect of any offence under this Chapter, the person in whose favour the charge is created may apply to the Registrar for registration of the charge along with the instrument created for the charge, within such time and in such form and manner as may be prescribed and the Registrar may, on such application, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed:
Provided that where registration is effected on application of the person in whose favour the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge.