Following the Companies Fresh Start Scheme 2020 (refer update below), the MCA has issued a Scheme for relaxation of time for filing forms related to creation or modification of charges under section 77/78 of the Companies Act, 2013, for the purpose of condoning the delay in filing certain forms in this regard. The said scheme also provides for the benefit of waiver of additional fees to charge related documents, which were not included in the Companies Fresh Start Scheme 2020. The scheme comes into effect from 17 June 2020.

The scheme will apply to 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 (a) before 1 March 2020, but the timeline for filing such form had not expired under section 77 as on 1 March 2020, or (b) falls on any date between 1 March 2020 to 30 September 2020.

The scheme will not apply if (i) Forms CHG-1 and CHG-9 have already been filed before the date of issue of this Circular; (ii) the timeline for filing the form has already expired under section 77 or section 78 of the Act prior to 1 March, 2020; (iii) the timeline for filing the form expires at a future date despite the exclusion of the time; and (iv) filing of Form CHG-4 for the satisfaction of charges.

To refer to the scheme and general circular no. 23/2020, dated 17 June 2020, click here.

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This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.