Companies Act, 2013

Section 367

Definition of "charge"

⚡ Quick Answer Reference: Section 367 Companies Act

Provision: Section 367 of Companies Act
Act: Companies Act, 2013
Classification: corporate
Jurisdiction: India
Summary: This section defines what a 'charge' means in the context of the Companies Act, 2013. A charge is created or arises under or by virtue of any enactment, contract, instrument, judicial decree, or order. This definition is crucial for understanding various provisions related to charges in the Act.

Statutory Content

What does Section 367 of Companies Act say?

For the purposes of this Act, "charge" means a charge created or arising under or by virtue of any enactment or any contract or any other instrument or any judicial decree or order.

Indian StandardSection 367, Companies Act, 2013

Bluebook (21st ed.)Companies Act, 2013, § 367 (India)

Court Pleading StandardSection 367 of the Companies Act, 2013

Canonical Web linkhttps://nyaya.cloud/acts/companies-act-2013/367

Embed this Section Card

Want to display this Section explanation card on your website? Copy and paste the HTML code below:

<iframe src="https://nyaya.cloud/api/widget/section?act=companies-act-2013&sec=367" width="100%" height="250" style="border:none; border-radius:8px;"></iframe>

Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

✓ VERIFIED FOR LEGAL ACCURACYReviewed & certified by Advocate Arjun Choudhury (Bar Council ID: D/8734/2015).

AI Educational GuideAI-generated explanation for educational and research purposes. Original statutory text is preserved exactly.

Section Meaning & Purpose

What does Section 367 of Companies Act mean?

Plain English Explanation

This section defines what a 'charge' means in the context of the Companies Act, 2013. A charge is created or arises under or by virtue of any enactment, contract, instrument, judicial decree, or order. This definition is crucial for understanding various provisions related to charges in the Act.

Practical Interpretation

In practical terms, this section helps identify and understand the different types of charges that can be created or arise in relation to a company, such as charges on assets, properties, or securities. This understanding is essential for companies, creditors, and other stakeholders to navigate the Act's provisions related to charges.

Core Legal Purpose

The core purpose of this section is to provide a clear and comprehensive definition of a 'charge' to ensure consistency and clarity in the application of the Act's provisions related to charges. This definition helps prevent ambiguity and confusion in the interpretation of the Act.

Key Legal Elements

•A charge is created or arises under or by virtue of any enactment.
•A charge is created or arises under or by virtue of any contract.
•A charge is created or arises under or by virtue of any instrument.
•A charge is created or arises under or by virtue of any judicial decree or order.

Practical Example

Practical Example of Section 367 Companies Act

Rajesh, a director of XYZ Limited, enters into a contract with a bank to secure a loan of ₹10 crores. The contract creates a charge on the company's assets, including its properties and securities. This charge is created under the contract and is a valid charge under the Companies Act, 2013, as per Section 367.

Common Questions (FAQ)

Frequently Asked Questions about Section 367 Companies Act

Q: What is the punishment or consequence under Section 367 of Companies Act, 2013?

This section is a definitional provision and does not prescribe a penal punishment. It only provides a clear definition of a 'charge' to ensure consistency and clarity in the application of the Act's provisions related to charges.

Q: Does this section apply to private individuals or public entities?

This section applies to all entities, including private individuals and public entities, that are subject to the Companies Act, 2013.

Q: Is an offence under this section bailable or cognizable?

This section is a definitional provision and does not prescribe a penal punishment. Therefore, it is neither bailable nor cognizable.

Common Questions about Section 367 Companies Act

What is Section 367 of Companies Act?

Section 367 of the Companies Act, 2013 (Companies Act) defines and regulates "Definition of "charge"". In plain terms: This section defines what a 'charge' means in the context of the Companies Act, 2013. A charge is created or arises under or by virtue of any enactment, contract, instrument, judicial decree, or order. This definition is crucial for understanding various provisions related to charges in the Act.

What are the elements of Section 367 of Companies Act?

The essential elements of Section 367 of Companies Act are: A charge is created or arises under or by virtue of any enactment.; A charge is created or arises under or by virtue of any contract.; A charge is created or arises under or by virtue of any instrument..

Landmark Case Laws