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Modification of charge

Corporate & Other Laws

Point 3. What does it mean? Any example?

Aman Mahajan

CA Final

★ 19K+

07-Jul-21 20:55

245

Answers (1)

Ceding means to give / surrender. Pari-passu means equal fotting. Say SBI and HDFC has given working capital loan to PQR Ltd. & has equal charge on stock & other current assets. Now, PQR Ltd. approaches PNB for another working capital loan. PNB wants first charge on stock & other current assets & doesn't want to share it with SBI and HDFC. If SBI and HDFC cede it, it will be modification