Intimating Satisfaction of Charge (Beyond 300 Days)

Aakanksha Singhal

Aakanksha Singhal

Published on: Dec 15, 2020

Khushboo Sharma

Updated on: Apr 3, 2025

★★★★★(38 Rating)

44228

Introduction

Satisfaction of Charge is payment of charge in full. A company shall give intimation to the Registrar, of the payment or satisfaction in full of any charge registered, within a period of thirty days from the date of such payment or satisfaction.

Mandatory Requirements

• Company shall take a NOC or a No Due Certificate or a Letter from the Charge holder stating that the amount has been satisfied.
• Company shall take approval of Central Government where Charge is not satisfied within 300 days.

Following Procedure is to be followed

1. Convene a Meeting of Board of Directors [As per section 173 & SS-1]
   • Issue Notice of Board Meeting to all the Directors of Company at their addresses registered with the Company, at least 7 days before the date of Board Meeting. A shorter notice can be issued in case of urgent business.
   • Attach Agenda, Notes to Agenda and Draft Resolution with the Notice.
   • Hold a meeting of Board of Directors of the Company and pass the necessary Board Resolution
     • to authorize any director or CS or CFO of the Company to file application for extension of time limit for satisfaction of charge with the Central Government.
     • To authorize any director or manager or CS or CFO of the Company to file form for satisfaction of Charge.
   • Prepare and Circulate Draft Minutes within 15 days from the conclusion of the Board Meeting, by Hand/Speed Post/Registered Post/Courier/E-mail to all the Directors for their comments. [Refer the Procedure for Preparation and Signing of Minutes of Board Meeting]
2. File Application for seeking Extension of time limit
   Company shall file Form CHG-8 to the Central Government for seeking extension of time for satisfaction of charge, if such filing is not made within a period of three hundred days from the date of such payment or satisfaction along with following documents
   • A documentary evidence of satisfying the charge.
   • The letter of authorisation from the authorised representative of a foreign company – In case of a foreign company.
   • Copy of resolution of the Board authorising the filing of the application and appointing the authorized representative.
   • Confirmation from the charge holder.
3. File Form CHG-4 with ROC
   On receiving approval from Central Government for extension in filing Form CHG-4, Company shall give intimation to ROC for Satisfaction of Charge in Form CHG-4 with No due certificate from the lender.
4. Certificate of Registration of Satisfaction of Charge by ROC
   The ROC will enter a Memorandum of Satisfaction of Charge in full and issue a Certificate of Registration of Satisfaction of Charge in Form CHG-5.
5. Make Necessary entries in the Register of Charge
   • Company shall make necessary entries in the Register of Charge in Form CHG-7 after the satisfaction of charge.
   • The entry should be authenticated by CS or a Director or any other person authorized by the Board in this behalf.