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CA Inter Corporate Law Chapter wise MCQs

Multiple Choice Questions

Chapter 4- Registration of Charge and Acceptance of Deposits

 

Q1) Eztech Machines Limited owns a plot of land which was mortgaged to Urbane Commercial Bank Limited for raising term loan of ₹ 2.00 crore. The mortgage was duly registered with the Central Registry. First loan installment of ₹ 50.00 lacs was released immediately after sanction of term loan with the condition that subsequent three installments of ₹50.00 lacs shall be released as soon as the earlier released installment is utilized satisfactorily. Is it necessary either for the company or the bank to register the charge on plot with the concerned Registrar of Companies (ROC) when the mortgage is registered with the Central Registry?

(a) It is not necessary either for the bank or the company to register the charge on plot of land with the concerned Registrar of Companies (ROC) when the mortgage is registered with the Central Registry.

(b) It is necessary to get the charge on plot on land registered with the concerned Registrar of Companies (ROC) irrespective of the fact that mortgage is registered with the Central Registry.

(c) The charge on plot needs to be registered with the concerned Registrar of Companies (ROC) only when the actual liability of the company with the Bank exceeds ₹ 1.00 crore.

(d) The charge on plot needs to be registered with the concerned Registrar of Companies (ROC) only when the term loan sanctioned by the bank to the company exceeds ₹ 2.00 crores

 

Q2) With a view to augment its production, Surya Techno-Products Limited availed a loan of ₹ 50.00 lacs from Shrilaxmi First Bank Limited for purchase of a new machinery by offering its factory worth ₹ 2.25 crores as security. However, the company did not initiate any steps to get the charge on factory registered in favour of lending banker within the specified time. As soon as the charge-holder bank came to know about the non-registration of charge with the ROC, it applied to the Registrar for registration of charge along with the instrument creating the charge and paid the requisite fees when demanded. Advise the bank whether it can recover the fees so paid for registration of charge from Surya Techno-Products.

(a) Yes, the bank can recover the fees paid by it for registration of charge.

(b) No, the bank cannot recover the fees paid by it for registration of charge because the bank is equally responsible for getting the charge registered.

(c) Only when it obtains recovery orders from Regional Director (RD), the bank can recover the fees paid by it for registration of charge from the company.

(d) Only when it obtains recovery orders from National Company Law Tribunal (NCLT), the bank can recover the fees paid by it for registration of charge from the company.

 

Q3) A charge was created by Cygnus Softwares Limited on its office premises to secure a term loan of ₹ 1.00 crore availed from Next_Gen Commercial Bank Limited through an instrument of charge executed by both the parties on 16th February, 2019. Inadvertently, the company could not get the charge registered with the concerned Registrar of Companies (ROC) within the first statutory period permitted by law and the default was made known to it by the lending banker with a stern warning to take immediate steps for rectification. Advise the company regarding the latest date within which it must register the charge with the ROC so that it is not required to pay a specific type of fees for charge registration.

(a) With a view to avoid paying a specific type of fees for charge registration, the company must get the charge registered latest by 27th April, 2019.

(b) With a view to avoid paying a specific type of fees for charge registration, the company must get the charge registered latest by 17th April, 2019.

(c) With a view to avoid paying a specific type of fees for charge registration, the company must get the charge registered latest by 2nd May, 2019.

(d) The company cannot now get the charge register as the time prescribed by Law has expired.

 

Q4) Cyplish Games and Toys Limited was sanctioned a term loan of ₹ 60.00 lacs by Zawnn Industrial Bank Limited on 21st November, 2018. As a security, the company offered its office premises situated at Bandra, Mumbai and an instrument of charge was executed. However, the company failed to get the charge registered with the concerned Registrar within the first as well as second statutory period available as per law. This was adversely commented by the internal auditors of the bank and therefore, after a strict advisory received from Shahji, the senior manager of the bank, the company was prompted to take steps for registration of charge. Name the specific type of fees which the company is now required to pay for registration of charge.

(a) Special Fees.

(b) Ad-valorem Fees.

(c) A Late Registration Fees.

(d) Ad-valorem Duty.

 

Q5) Every company shall pay a penal rate of interest of ……….. per annum for the overdue period in case of deposits, whether secured or unsecured, matured and claimed but remaining unpaid:

(a) 9%

(b) 14%

(c) 18%

(d) 24%

 

Q6) As per the provisions of the Companies Act, 2013 and relevant rules thereunder, an eligible company is not permitted to accept from public or renew the same deposits (whether secured or unsecured) which is repayable on demand or in less than ______________ months. Further, the maximum period of acceptance of deposit cannot exceed ________________ months. But, for the purpose of meeting any of its short- term requirements of funds, a company may accept or renew deposits for repayment earlier than ______________ months subject to certain conditions.

(a) six, thirty six, six

(b) three, twenty four, three

(c) six, sixty, six

(d) three, sixty, six

 

Q7) A reserve account that shall not be used by the company for any purpose other than repayment of deposits is called:

(a) Debenture redemption reserve account

(b) Deposit repayment reserve account

(c) Capital redemption reserve account

(d) Free reserve account

 

Q8) Normally no deposits are repayable earlier than ______ from the date of such deposits or renewal thereof.

(a) 3 months

(b) 6 months

(c) 12 months

(d) 1 year

 

Q9) Bhumi Real Estate Developers Limited has accepted deposits from its members. There is no default in repayment of such deposits on their maturity. The statutory amount to be deposited by the company on or before 30th April of each year in a specified account opened with its bankers, till the deposits are fully repaid is:

(a) Not less than 50% of the amount of its deposits maturing during the following financial year.

(b) Not less than 30% of the amount of its deposits maturing during the following financial year.

(c) Not less than 20% of the amount of its deposits maturing during the following financial year.

(d) Not less than 10% of the amount of its deposits maturing during the following financial year.

 

 

Q10)  A Limited Company is accepting deposits of various tenures from its members from time to time. The current Register of Deposits, maintained at its registered office is complete. State the mandatory minimum period for which it should be preserved in good order.

(a) Four years from the financial year in which the latest entry is made in the Register.

(b) Six years from the financial year in which the latest entry is made in the Register.

(c) Eight years from the financial year in which the latest entry is made in the Register.

(d) Ten years from the latest date of entry.

 

Q11)  Dream World Entertainment Limited, has accepted deposits worth ₹50.00 lacs from public on 1st April 2019 for a period of 24 months i.e. repayment of deposit would be made on 31st March 2021. The rate of interest payable on such deposits is 9% p.a. One of the depositors Mr. Aman requested the company on 1st June 2020 for premature repayment of his deposit of ₹6.00 lacs along with interest. Advise the company in the said matter.

(a) The company can make premature repayment of deposits only with an intention to reduce the total amount of deposits to bring it within permissible limits. Hence, in the given case, the company cannot repay the deposit before the actual maturity.

(b) The company can prematurely repay the deposit along with interest @9% p.a. for the period of 12 months (from 1st April 2019 to 31st March 2020).

(c) The company can prematurely repay the deposit along with interest @8% p.a. for the period of 12 months (from 1st April 2019 to 31st March 2020).

(d) The company can prematurely repay the deposit along with interest @8% p.a. for the period of 14 months (from 1st April 2019 to 31st May 2020).

 

Q12) Suneet Spices Limited decides to raise deposits of ₹20.00 lacs from its members. However, it proposes to secure such deposits partially by offering a security worth ₹15.00 lacs. Which of the following options best describe such deposits:

(a) Fully secured deposits (except a small portion)

(b) Unsecured deposits

(c) Partially secured deposits

(d) These cannot be classified as deposits

 

Q13) Ruchita wants to renew her deposit of ₹5.00 lakh with Kewal Constructions Limited before the expiry of original period for availing higher rate of interest. The fresh period, for which Ruchita is required to renew her deposit to be eligible for the higher rate shall be

(a) One and a half times the unexpired period of original deposit.

(b) Double the unexpired period of original deposit.

(c) Six months more in addition to the unexpired period of deposit.

(d) Longer than the unexpired period of deposit.

 

Q14) Any person acquiring property, on which charge is registered under section 77, shall be deemed to have notice of the charge from:

(a) the expiry of thirty days of such charge

(b) the date of application for registration of the charge

(c) the date of acquiring the property

(d) the date of such registration

 

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