Section 77 of the Companies Act, 2013 pertains to the registration of charges created by a company. Here’s a summary of its key provisions

1. Mandatory Registration:

Every company creating a charge (secured loan) on its assets or property (tangible or intangible, movable or immovable) or any of its undertakings, whether within or outside India, must register the charge with the Registrar within 30 days of its creation.

2. Registrar’s Role:

The charge must be registered along with the prescribed particulars and instrument (if any) creating the charge, in the prescribed manner and with prescribed fees.

3. Extension of Time:

The Registrar may allow registration of the charge:

Within 60 days (on payment of additional fees), or

Within 120 days (if the creation date is after the Companies (Amendment) Ordinance, 2019) with additional ad valorem fees.

4. Failure to Register:

If a company fails to register the charge:

The charge becomes void against the liquidator and creditors.

The debt remains valid and enforceable by the lender, but the lender loses priority as a secured creditor.

5. Subsequent Registration:

The charge can still be registered after the prescribed period with permission from the Central Government (with penalties and conditions).

6. Who Can File:

Either the company or the charge-holder (lender) can file the charge with the ROC.