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Charges Under Company Law

Zeenat Ul Kubra, KIIT School of Law, KIIT University


Every individual, institution, body, chapter as well as a company, needs various aspects interlinked in order for it to run smoothly. A company is a legal entity which is formed by different individuals to generate profits through their commercial activities. Be it manpower, infrastructure or even the policies of a company, all require revenue as a binding fuel for its functions. There are various ways to generate such revenues inside the legal purview.

A special topic of CHARGES is to be dealt in this Paper.

Any corporation may borrow money by providing security of its assets and may create a lien on the properties of the Company. Lien is like collateral or a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

The Company may also issue Debentures to raise funds which may carry a right/ interest in the Assets/Properties of the company. A charge is a way of security to the creditor/lender of his interest/right on the properties of the company for the amounts due to him by the company.

The Act defines charges so as to mean an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage.1

In the previous act2 there was no mention of the word Mortgage where as Sections 124 to 145 dealt with charges. Under the Current Act of 2013, Sections 77 to 87 deals with Charges.

Key Words – Charges, Act, Company, Security, Interest.

Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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