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Condonation of Delay of Charge in CHG 8 form

Condonation of Delay of Charge

We provide end to end consultancy related to condonation of delay of charge, which may relates to satisfaction /registration /modification of charge etc.

Purpose of Condonation of Delay of Charge

Application to Central Government are made by company or any interested person for (a) condonation of delay of charge related to registration of creation/modification/satisfaction of charge, or (b) Omission or mis-statement of any particular in respect of creation/ modification/ satisfaction of charge.

Registration of Charges within Prescribed Time

As per sub-section 1 of section 77(1), It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation.

Provided that the Registrar may, on an application by the company, allow such registration to be made (a) in case of charges created before the commencement of the Companies (Amendment) Ordinance, 2019, within a period of three hundred days of such creation; or (b) in case of charges created on or after the commencement of the Companies (Amendment) Ordinance, 2019, within a period of sixty days of such creation, on payment of such additional fees as may be prescribed:

Provided further that if the registration is not made within the period specified (a) in clause (a) to the first proviso, the registration of the charge shall be made within six months from the date of commencement of the Companies (Amendment) Ordinance, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies; (b) in clause (b) to the first proviso, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such advalorem fees as may be prescribed.

Provided also that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered.

Provided also that this section shall not apply to such charges as may be prescribed in consultation with the Reserve Bank of India

Condonation of Delay of Charge by Central Government

As per section 87, the Central Government on being satisfied that (a) the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or (b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any such charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83, was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.

The Central Government may on an application filed in Form No. CHG-8 in accordance with section 87 (a) direct rectification of the omission or misstatement of any particulars, in any filing, previously recorded with the Registrar with respect to any charge or modification thereof, or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83, (b) direct condonation of delay of charge 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.”

Mandatory Attachments for Condonation of Delay of Charge

  • A documentary evidence of creating/modifying/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 – In case of Company
  • In case of ommission or misstatement of a charge: *An Affidavit stating ommission or misstatement of a charge *Confirmation from the charge holder

Optional Attachment

  • Balance Sheet and Annual Return of financial year in which form was filed for which rectification is applied (if completed)
  • Any other optional attachment.

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