A company upon payment or satisfaction in full of any charge registered under Chapter VI of companies Act 2013 shall give intimation of satisfaction to the Registrar of Companies. The procedure for applying for the certificate of satisfaction of charges registered under companies act are as under. The company shall approach lender bank/financial institution to issue…
A Charge means an interest or lien created on the property and assets of the company or any of its undertakings or both as security and includes a mortgage. When a charge created on the property and assets of a company is registered by ROC, it is a notice of such charge to the public…
Basically, lien and pledge are forms of the right to retain goods for the same purpose i.e. both are security interest options for payment of a debt. Though they look identical; there are certain differences which this article identifies herein. Lien: Lien is akin to bailment. It is the right to retain goods or securities…
The lender’s right to the term “Hypothecation of assets” is not defined anywhere in the statute. Some courts have even compared hypothecation to the mortgage of movables. Hypothecation of assets is defined in SARFAESI ordinance 2002 as under; “a charge in or upon any movable property, existing or future, created by a borrower in favour…
Forensic audit is a process of conducting the audit of an organization or of an individual’s financial information, to produce the same as evidence in the court. The forensic auditor’s report may help to nail and prosecute the parties involved in fraud, embezzlement or for other types of financial misappropriations. In banks, forensic audit signifies…
Legal audit is normally used by insurance and other users of legal services, by appointing an auditor to check the documentation of expenses for which the lawyer and the law firm has billed. The auditors not only reviews the fees charged by the law firm according to billing standards and guidelines, they also examine whether…
The law of limitation means the time-limit for different suits within which an aggrieved person can approach the court to obtain a decree against the principal debtor and surety. The different time limit or period of limitation is prescribed for different types of suits, appeals or applications in the ‘Schedule’ to the Limitation Act, 1963.…
Definition of Guarantee: A contract of guarantee means a contract to perform the promise or discharge liability of the third person in case of his default. A guarantee which extends to series of transactions is called continuing guarantee. The meaning of Surety (Guarantor), principal debtor, and creditor: The person who gives the guarantee is called…
(The law of limitation applicable to a general guarantee and the guarantee issued by banks and financial institutions are different. This article explains the law of limitation explicitly applicable to bank guarantees, invocation and cancellation of bank guarantees) The law of limitation of time means the time-limit for different suits within which an aggrieved person…
Reserve Bank of India, directed today (September 1, 2016) that with effect from January 1, 2017, all Credit Information Companies (CICs) shall provide access, upon request and after due authentication of the requester, to a free full credit report (FFCR) once in a calendar year (January to December) to individuals whose credit history is available…