Use CHG-1 when the charge is not related to debentures. Use CHG-9 when it is related to debentures. This is the main form-selection rule. The lender's name—bank, NBFC or another institution—does not decide the form.
A charge is a security interest over a company's property or assets. For example, a company may give a bank a charge over stock, receivables, machinery or land. Signing the loan or security document creates the commercial security; registering the charge with the Registrar of Companies (ROC) is a separate legal step.
The legal basis is in Chapter VI of the Companies Act, 2013. Sections 77 to 79 cover creation, charge-holder filing and modification. The Companies (Registration of Charges) Rules then prescribe the forms.
Choose the form from the event
| Event | Form | What should come back from ROC |
|---|---|---|
| Create or modify a charge that is not related to debentures | CHG-1 | CHG-2 for creation or CHG-3 for modification |
| Create or modify a debenture-related charge | CHG-9 | CHG-2 for creation or CHG-3 for modification |
| Report full payment or satisfaction of a registered charge | CHG-4 | CHG-5 after satisfaction is recorded |
Rule 3 expressly identifies CHG-1 for charges other than debentures and CHG-9 for debentures. Rule 6 identifies the registration and modification certificates.
Two simple examples
Bank working-capital facility: a company gives the bank a hypothecation charge over inventory and trade receivables. The security is not connected with debentures, so the company uses CHG-1.
Secured non-convertible debentures: a company issues secured NCDs and creates a charge over machinery for the debenture-holders or trustee. Because the charge relates to debentures, the company uses CHG-9.
The same distinction applies to a later modification. A change to a non-debenture charge is normally handled through CHG-1; a change to a debenture-related charge is handled through CHG-9.
Start with the normal 30-day deadline
Section 77 requires a company to register a new charge within 30 days from its creation. For charges created under the present delay framework, the ROC may allow registration within 60 days from creation on payment of the prescribed additional fee. If the charge is still not registered, the ROC may allow a further 60 days on payment of the prescribed ad valorem fee.
| Period from creation | Practical meaning |
|---|---|
| Day 0 to day 30 | Normal filing period. This should be the team's working deadline. |
| After day 30 and up to day 60 | Delayed registration may be allowed with the prescribed additional fee. |
| After day 60 and up to day 120 | A further period may be allowed with the prescribed ad valorem fee. |
| After day 120 | Do not assume the normal CHG-1 or CHG-9 delay route is still available. Take case-specific advice before acting. |
Rule 4 deals with the delayed-registration application and applicable fee stage. The safest practice is still to file in the first 30 days. The outer period is a relief route, not a target date.
Which date starts the clock?
Use the date on which the executed instrument legally creates or modifies the charge. Do not automatically count from the loan sanction, first disbursement, first EMI, board review or month-end. Read the executed documents and confirm the actual legal event.
Example: suppose a sanction letter is issued first, but the executed deed creates the charge later. The team should document why the deed date is the relevant trigger. If the documents create security in stages or use conflicting dates, obtain a legal view instead of choosing the most convenient date.
Modification is a fresh compliance event
Section 79 applies the Section 77 framework to a change in the terms, conditions, extent or operation of a registered charge. A facility increase, change in charged assets, change in ranking or addition of a charge-holder can therefore require a modification filing.
Compare the amendment document with the particulars already registered. A change in the loan account does not automatically prove that the registered charge changed, but it should trigger this comparison.
If the company does not file
Section 78 gives the charge-holder a protective route when the company fails to register within the first 30 days. The charge-holder may apply with the charge instrument. The ROC can give notice to the company and allow registration if the company neither files nor shows sufficient cause. The charge-holder can recover the filing and additional fees it paid from the company.
This route protects the creditor; it is not a reason for the company to wait. Section 77 also makes registration important against a liquidator and other creditors, while preserving the underlying repayment contract.
Do not stop at the payment receipt
A paid challan or submission acknowledgement only shows that a filing step occurred. The team should also confirm the ROC outcome and save:
- the filed form and attachments;
- the executed instrument;
- the payment receipt and service-request details;
- the charge ID; and
- CHG-2 for creation or CHG-3 for modification.
Reconcile the certificate with the secured amount, asset description, charge-holder and ranking in the signed documents. If the ROC marks the form for resubmission, the filing is not complete merely because it was uploaded once.
Full repayment uses CHG-4, not CHG-1 or CHG-9
When the registered charge is paid or satisfied in full, Section 82 sets a normal 30-day period to inform the ROC. The ROC may allow the intimation within 300 days from payment or satisfaction on application and payment of the prescribed additional fee. Rule 8 prescribes CHG-4 and the CHG-5 satisfaction certificate.
Do not mix this 300-day satisfaction limit with the 120-day creation or modification framework. They apply to different events.
For the complete non-debenture lifecycle, including CHG-4 and the company's CHG-7 register, read our CHG-1 and CHG-4 filing guide.
A short file-review sequence
- Identify whether the event is creation, modification or full satisfaction.
- Read the executed instrument and record the trigger date.
- Ask whether the charge relates to debentures.
- Select CHG-1 or CHG-9 and target the first 30 days.
- Match the form particulars to the signed documents before filing.
- Track resubmission or approval until the correct ROC certificate is received.
- Update the company's charge records and keep the full evidence trail.
The central decision is simple: non-debenture charge means CHG-1; debenture-related charge means CHG-9. The harder part is controlling the correct event date and following the filing through to the ROC certificate.
