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.
- Company shall take a NOC or a No Due Certificate or a Letter from the Charge holder stating that the amount has been satisfied.
Following Procedure is to be followed
- 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 manager or CS or CEO or CFO or any authorized representative to file form for the 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]
- File Form CHG-4 with ROC
- Company shall give intimation of the satisfaction of charge to ROC in Form CHG-4 within a period of 30 days from the date of NOC issued by the lender along with this No Due Certificate.
- On Application made to the Registrar, Company can also give this intimation within additional 270 days over and above 30 days on payment of additional fees along with declaration from the company signed by its CS or Director that such belated filing shall not adversely affect rights of any other intervening creditors of the Company.
- 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.
- 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.