(Querist) 10 February 2011
This query is : Resolved
If a company purchase a car by availing a loan from a bank and indicates in its books that the said loan is secured by way of hypothecation of car. No Deed of Hypothecation agreement was executed by the company and bank. The loan gets secured in the name of the bank by way of an endorsement in the RC book.
Is the company liable to file Form 8 with ROC, if this is not insisted by the Bank too.?
Normally the security covers all assets, but in the instant case, the company does not have any other asset other than this car in their name.
(Expert) 10 February 2011
it is not a charge according to me but a financed vehicle. The RC must be mentioning it as 'hyopthecated'.
Normally a charge is said to be created on an existing asset but in present case the asset is purchased on finance. So you need not file form 8 for purchasing a financed vehicle. however, you may cross check with Co. CA or CS