The Ministry of Corporate Affairs(MCA) on Wednesday issued the Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013.
In the wake of COVID-19, the Ministry has received the representations requesting that the timelines related to the filing of certain charge related forms may be suitably relaxed so as to provide a window of compliance for the registration of charges.
Under the Companies Fresh Start Scheme, 2020 as laid out in the General Circular, dated March 30, 2020, the benefit of waiver of additional fees was not extended to the charge related documents. Therefore, it has been suggested that some dispensation may be provided for filing of charge related documents as well.
For the purpose of condoning the delay in filing certain forms related to the creation/ modification of charges, the Central Government decided to introduce a Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013.
The scheme shall be applicable in respect of the filing of Form No. CHG-l and Form No. CHG-9 by a company or a charge holder, where the date of creation or modification of charge is before March 1, 2020, but the timeline for filing such form had not expired under section 77 of Act as on March 1, 2020, or falls on any date between March 1, 2020, to September 30, 2020.
“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. If the form is 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 elapsed from the date of the creation of charge till 29.02.2020,” the circular said.
The Ministry barred the applicability of this circular on CHG-1 and CHG-9 Forms, which has already been filed before the date of issue of this Circular; The timeline for filing the form has already expired under section 77 or section 78 of the Act prior to March 1, 2O2O; the timeline for filing the form expires at a future date, despite the exclusion of the time; and Filing of Form CHG-4 for the satisfaction of charges.
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