Deed of hypothecation in case of name change
Praveen Kanungo
(Querist) 08 August 2011
This query is : Resolved
There is a Private Company having a loan with a Bank. The company converts into a public company resulting in a change in its name. Do the deed of hypothecation and equitable mortgage deed need to be executed again due to name change or a supplementary agreement in this regard would suffice. As far as Companies Act is concerned there is no need to execute any documents because a change in name does not affect the liabilities of the company and the charge will continue in the new name. However I wanted to know the position with regard to stamp act and contract act etc.
prabhakar singh
(Expert) 09 August 2011
A supplementary agreement in this regard should suffice
Raj Kumar Makkad
(Expert) 11 August 2011
In the case of bank loan/mortgage, there is no need of any change or re-execution of agreements etc. The mortgagee though in the changed name is still liable against lien and no already mortgaged property has been got released by change of name of mortgagor.
