Maintain the company’s own charge register
Section 85 of the Companies Act, 2013 and Rule 10 of the Companies (Registration of Charges) Rules, 2014 require Form CHG-7 to be kept at the registered office with copies of the instruments creating charges. Under Rule 10, enter the prescribed particulars of registered charges, property acquired subject to a charge, and modifications and satisfactions. Make the applicable entries forthwith after creation, modification or satisfaction and have a director, the company secretary or another person authorised by the board authenticate them. Preserve the register permanently. Preserve the instrument creating or modifying the charge for eight years from satisfaction of the charge. The date of creation or filing does not start that retention period.
Read the applicable text: Companies Act, 2013: sections 81 and 85 MCA Gazette text: Rules 10–11 and notified Form CHG-7 ICSI e-book: Rule 10.
Maintain a record of events, not just a list of active loans
Use the notified form for charge ID, creation or acquisition date, registration date, property, the period and amount secured, the charge holder’s name and address, the terms, instrument particulars and applicable modification and satisfaction dates, including their registration dates. A company that acquires property subject to a charge needs that fact captured as well. Record each event promptly and track pending Registrar references without inventing them. On receipt of registration evidence, complete and authenticate the updated record. A filing receipt and an authenticated company entry answer different questions.
Reconcile the two registers and the debt evidence
Compare CHG-7 to the Registrar’s charge record under section 81 by charge ID, event date, asset and holder. Match signed instruments, certificates and evidence of satisfaction. A change to security does not always change the borrowing balance. A part repayment or release of an asset also does not by itself show full satisfaction. Where an entry or filing differs from the evidence, identify which record needs correction and keep a dated trail.
Handle inspection and retention separately
Section 85(2) and Rule 11 provide for inspection of the register and instruments during business hours, without fee for a member or creditor and at the prescribed fee for any other person, subject to reasonable restrictions imposed by the company’s articles. Classify the request and record what was made available. At satisfaction, add an instrument retention date to the file. Before disposal check whether a legal hold, another requirement or the status of the satisfaction prevents it; keep the permanent CHG-7 record regardless.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Registered office reconciliation
CHG-7 has 14 charge IDs while the Registrar extract has 15, including one acquired property. All 14 match. The exception log has one missing company record and no unmatched company-only IDs.
Illustrative example 2: Modification without new borrowing
A registered charge secures ₹80 lakh and is modified to secure ₹120 lakh. The secured amount rises by ₹40 lakh. Preserve the original and modification history under that charge; do not infer a ₹40 lakh disbursement.
Illustrative example 3: Distinct acquisition and registration dates
Property subject to charge is acquired on 5 May 2026 and the particulars are registered on 23 May 2026. The dates are 18 days apart. Record both in the fields serving those purposes, using the instrument and registration evidence respectively.
Illustrative example 4: Asset released but charge remains
Security originally covers six machines. The lender releases two and retains its charge over four. The security schedule falls from six assets to four; do not record satisfaction merely because two assets were released.
Illustrative example 5: Retention measured from satisfaction
The instrument dates from 10 August 2020 and the charge is satisfied on 18 September 2026. The eight-year anniversary is 18 September 2034. Review lawful disposal after the period and any holds; CHG-7 remains permanent.
Illustrative example 6: Inspection triage
Four requests arrive: two established members, one verified creditor and an unrelated researcher. Three fall into the no-fee group, and the researcher is considered under the separate statutory category. Schedule inspection subject to reasonable restrictions in the articles.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Confirm the registered-office copy | Current address and accessible CHG-7 record. |
| 2 | Build a charge-ID inventory | Registrar extract and authenticated company register. |
| 3 | Match creation and acquisition dates | Executed instrument or transfer documents. |
| 4 | Check registration details | Registrar evidence tied to the correct charge. |
| 5 | Compare property descriptions | Instrument schedules, asset references and modification records. |
| 6 | Identify the amount and holder | Security terms, lender notices and supporting records. |
| 7 | Record modifications promptly | Updated instrument and authenticated register entry. |
| 8 | Substantiate satisfaction | Discharge or release evidence and corresponding record. |
| 9 | Set instrument retention review | Satisfaction date, eight-year anniversary and holds. |
| 10 | Log inspection and authentication | Request category, applicable restrictions and authority of signatories. |
Sixteen practitioner FAQs
1. Is CHG-7 a substitute for registering a charge?
No. It is the register kept by the company under section 85 and Rule 10.
2. Does the Registrar record replace CHG-7?
No. The Registrar and the company have separate statutory records.
3. Where must the company keep CHG-7?
At its registered office, alongside copies of the instruments creating charges.
4. Does it cover a floating charge?
Yes. Section 85 expressly includes floating charges affecting the company’s property, assets or undertakings.
5. What if security existed before the company acquired the property?
Identify the acquisition and the existing charge in the register with the applicable particulars.
6. When should the event be entered?
Forthwith after creation, modification or satisfaction, as applicable. Track registration evidence separately.
7. Can a board-authorised employee authenticate entries?
Yes. Preserve the board authority and evidence of who authenticated the entries.
8. Can treasury delete the record when the debt is repaid?
No. Record the supported satisfaction and preserve CHG-7 permanently.
9. When does the instrument retention period begin?
From the date of satisfaction of the charge, under Rule 10(4).
10. Does the original and modification history remain relevant after satisfaction?
Yes. Maintain the register history and retain the instruments under the eight-year rule.
11. Can the company charge its creditor an inspection fee?
Section 85(2) gives creditors inspection without payment of fees.
12. Can an unrelated person ask to inspect?
Yes, under the prescribed fee category and subject to reasonable restrictions in the articles.
13. Does section 85 cover inspection of the instrument as well?
Yes. It covers the register and instrument kept under subsection (1).
14. Is an SRN enough to establish registered particulars?
Use the relevant registration evidence to verify the particulars; a submission reference alone does not establish the outcome.
15. What if the security description differs from the asset register?
Trace the legal description to the signed instrument and add a cross-reference; do not rewrite the legal description from an accounting label.
16. Does partial repayment reset the instrument retention clock?
No. Determine whether the charge itself has been satisfied; partial repayment is not that event by itself.
Official sources
Companies Act, 2013: sections 81 and 85 MCA Gazette text: Rules 10–11 and notified Form CHG-7 ICSI e-book: Rule 10