07 May 2013
Whether Form 17 should be filed within 30 days from the receipt "NO DUE CERTIFICATE" from the charge holder or from the date on which the loan is paid? Which should i consider for calculating the due date?
07 May 2013
RECKONING OF THIRTY DAYS IN CASE OF BANK FOR FILING OF FORM-17
Department Circular I: The Department is of the view that the period of 30 days under section 138, in case where bank is involved, will be counted from the date of issue of Bank letter to companies intimating them about the satisfaction of charge under section 138 (Letter No. 3(141) 17/78 dated 17-08-1978 as corrected by letter No. 8/10(25)/77, dated 20-09-1978).
Department Circular II; In a later Circular the department further clarified: The matter has been re-considered and it is felt that section 138 of the Act refer to the “date of payment or satisfaction” and there is no linkage to the date of Bank’s letter. It is, therefore clarified that the satisfaction of charge under section 138 of the Act be filed with ROC with in 30 days from the date of payment or satisfaction of charge. (Letter No. 3/23/89-CL-V dated 26.12.1991). This Circular is in accord with the decision of CLB in Swaraj Mazda Case, (Supra).
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