SECTION 135
MODIFICATION OF
CHARGES
Change in rate of
interest arising out of variation of bank rate--Whether amounts to a charge
envisaged under the section
The scope of Circular No.8/14(135)/65-CL-V. dated
13.9.1965 [printed below], is limited to the cases where the rate of interest
on a charge etc., has been fixed at a specified percentage above the bank rate
as notified by the Reserve Bank and there is a change of rate of interest
arising out of the variation of bank rate made by the Reserve Bank by a
notification. In other cases of change
of rate of interest, section 135 would be applicable and Form No.14 would be
required to be filed, unless the change is consequent upon the change in the
bank rate notified by the Reserve Bank.
* LETTER
NO.8/6/81-CL-V, DATED 14-4-1981
Copy of circular, dated 13.9.1965 referred to in clarification
Where under the relevant mortgage
deed/agreement the "term" as to the rate of interest on a charge,
etc., has been fixed at a specified percentage above the bank rate as notified
by the Reserve Bank, a change in the rate of interest payable on the charge
arising out of variation of the bank rate would not amount to change in the
"term" of the charge under section 135. Hence, in such a case, no return need to be filed under the said
section in such case, the Registrar of Companies need not insist on the company
filing Form No.14 under section 135.
* LETTER NO.8/14(135)/65-CL-V, DATED 13.9.1965.