17 November 2012
I have to file form 17 for satisfaction of charge of a public company. Bank's letter is of dated 07/09/2012. when i am uploading it, In MCA it is showing file form 21 with CLB notice for condonation. What is this?
Please tell the relevant procedure for filing the same.
17 November 2012
30 days Expired you will have to file petition for condonation of delay.
SATISFACTION OF CHARGE (Section 138)
On satisfaction of charge in full an intimation thereof shall be given to ROC within 30 days of satisfaction of the charge by filing Form No. 17 together with a letter or certificate given by the charge holder confirming that the charge has been satisfied in full.
PETITION TO CLB FOR CONDONATION OF DELAY / RECTIFICATION OF CHARGE (Sec. 141)
If for any reason charge ( creation or modification ) could not be filed with ROC within 60 days ( 30 days under law + 30 days with additional fee under ROC power ) and in case of satisfaction 30 days, then the Company have to take the condonation of delay in filing such particulars with Company Law Board.
In case of rectification / corrections required in a registered charge, the same can be done only with the order of Company Law Board under this section.
The condonation petition under section 141 include the following :
• Petition containing details about company, charge delayed and reason thereof. • Affidavit verifying the petition. • Board Resolution authorising director to make affidavit. • Memorandum of Appearance by professional appearing on behalf of the company.
The Company Law Board on hearing of the case or otherwise decide about the genuinity of the case on the ground of just and equitable will levy cost for such delay and condone the delay / rectification by issuing order in this behalf.
The Company will file the copy of order alongwith Form No. 21 with ROC and get the registration in this behalf.
23 November 2012
Circular No. 10/91 bearing F. No. 3/23/98/CL V, dated 26-12-1991 issued by Department of Company Affairs (now the MCA) states that satisfaction of charge under section 138 shall be filed with the Registrar of Companies within thirty days from the date of satisfaction/payment of charge. Therefore, any time involved in collecting 'No dues Letter' from the charge holders shall not be considered and allowed.
Section 138 refers to the date of payment or satisfaction and there is no linkage to the date of bank's letter. It has been clarified by the Department vide Circular No. 2/96 [F. No. 14/1/95-CL-V], dated 15-4 1996 it has come to the notice that certain Registrars of Companies are insisting on a separate letter from Banks/Financial Institutions in respect of the date of satisfaction of charge even if Form 17 (now e-Form) had been signed by both the parties i.e., lender and the borrower. In terms of section 138(2) of the Companies Act, 1956, the Registrar is required to send a notice to the holder of the charge as to why the satisfaction should not be recorded as intimated to the Registrar. If e-Form 17 is signed by both the parties and certified by chartered accountant or company secretary or cost accountant and is filed with Registrar, the satisfaction of charge can be registered without issuing any notice to the holder of the charge under section 138(2) of the Act.