A charge means an interest or right which a lender or creditor obtains in the property of the company by way of security that the company will pay back the debt.
At present time in India almost all the large and small companies depend upon share capital and borrowed capital for financing their projects/business. Borrowed capital may consist of funds raised by issuing debentures, which may be secured or unsecured, or by obtaining financial assistance from Financial institution or banks. The financial institutions/banks do not lend their monies unless they are sure that their funds are safe and they would be repaid as per agreed repayment schedule along with payment of interest. In order to secure their loans they resort to creating right in the assets and properties of the borrowing companies, which is known as a charge on assets. This is done by executing loan agreements, hypothecation agreements, mortgage deeds and other similar documents, which the borrowing company is required to execute in favour of the lending institutions/ banks etc.
|Application for registration of creation, modification of charge (other than those related to debentures)||CHG-1|
|Particulars for satisfaction of charge||CHG-4|
|Notice of appointment or cessation of receiver or manager||CHG-6|
|Application for registration of creation or modification of charge for debentures or rectification of particulars filed in respect of creation or modification of charge for debetures||CHG-6|