The Ministry of Corporate Affairs has vide its notification dated 17th June, 2020 (General Circular No. 23/2020)  introduced the Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 and further amended by notification dated 28th September, 2020 by General Circular no 32/2020.

The Ministry of Corporate Affairs has introduced the aforesaid scheme as relaxation against the outbreak of Novel Coronavirus (COVID-19) across the world.

Provisions of the Scheme:

Applicability:

For filing Charge Forms CHG-1 (for other than Debentures) and CHG-9 (for debentures including rectification) where creation/ modification of charge:

  1. is before 01st March, 2020 but timeline for filing such form had not expired under Section 77 as on 01st March, 2020 (i.e. 120 days)
  2. is between 01st March, 2020 to 31st December, 2020 (both dates inclusive)

Relaxation of Time:

Falling under i above (Case A) Falling under ii above (Case B)
   
The period beginning from 01.03.2020 and ending on 31.12.2020 shall not be reckoned for the purpose of counting the number of days under section 77 or section 78 of the Act The period beginning from the date of creation/ modification of charge to 31.12.2020 shall not be reckoned for the purpose of counting of days under section 77 or section 78 of the Act.
   
In case of non -filing of form under period stipulated above In case of non -filing of form under period stipulated above
   
The first day after 29.02.2020 shall be reckoned as 01.01.2021 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act. The first day after the date of creation / modification of charge shall be reckoned as 01.01.2021 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.

 

Payment of Fees:

In regard to Case A above, if the Form is filed on or before 31st December, 2020, the fees charged shall be which was payable on 29th February, 2020. In regard to Case B above, if the form is filed before 31.12.2020, normal fees shall be payable under the Fees Rules.
   
If the Form is filed after 31st December, 2020, the applicable fees shall be charged under the Fees Rules after adding the number of days beginning from 01.01.2021 and, ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29.02.2020. If the Form is filed after 31st December, 2020, the first day after the date of creation/modification of charge shall be reckoned as 01.01.2021 and the number of days till the date of filing of the form shall be counted accordingly for the purposes of payment of fees under the Fees Rules.
   

Non- Applicability of Scheme

  1. The forms CHG-1 and CHG-9 had already been filed before the date of issue of this Circular.

 

  1. The timeline for filing the form has already expired under section 77 or section 78 of the Act prior to 01.03.2020.

 

  1. The timeline for filing the form expires at a future date, despite exclusion of the time provided above.

 

  1. Filing of Form CHG-4 for satisfaction of charges.

 

Thus, in the continuous endeavours by Ministry of Corporate Affairs to provide various relaxations regarding compliance of Filing of various e-Forms, the scheme for relaxation of filing Forms for Charge is of much importance.  

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