Applicability Form 8 - car loans, Other Topics

[BHARTI DEY]

Is filing of Form 8 (registration of charge) with Registrar of Companies applicable in case of car loans which are secured by hypothecation of cars acquired on Equitable Monthly Installment (EMI) system ?

Posts / Replies

[Mukesh Kumar]

As per the provisions of section 124 of the companies act, 1956 - charge includes mortgage. Further as per section 125 of the companes act, 1956, pledge of any movable property is not subject to the provisions of charge. Since hypothication is not a mortgage but a pledge of movable property, the same shall be out of the provisions of charge under chapter V of the companies act, 1956.