Crystallization of a floating charge:-
Crystallization means conversion of a floating charge into a fixed charge on the assets in the class charged. A floating charge crystallizes when:-
(i) The company discontinues carrying on business.
(ii) The company goes into liquidation
(iii) A receiver is appointed for.
(iv) A default is made in paying the principal on interest and the holder or the charge brings an action to enforce his security specified in the deed.