Charge satisfaction

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RAM LAL (Querist)
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14 December 2012 Dear Sir,

We have filed Form 17 after Expiry of 30 Days from the Date of Satisfaction of Charge. But, the status of Form 17 is pending for Form 21.

As After 30 Days, we have to approach CLB, for Condonation. Is there any other way, to Escape from CLB Procedure.

Kindly resolve my Query in Detail with all Possible Solutions.

Regards,

Ajay Mishra

Ajay Mishra (Expert)
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14 December 2012 Hi

Under section 141 the Central Government has been vested with power to condone delay and grant extension of time for filing the particulars of charges or for the registration of the charge or for giving of intimation of payment or satisfaction, if such delay was due to inadvertence or to some other sufficient cause.
Inadvertence would cover the cases of negligence and carelessness, when it is not actuated by any fraudulent or improper motive. Delay in filing the particulars of a charge created due to inaction could not be condoned.
The Central Government also has the power to order rectification of the Register of charges in respect of any omission or mis-statement in the register. (See Appendix 5)
The provisions of section 141(1)(a) make it clear that the power vested in the CLB (now Central Government) is a discretionary power and that discretion has to be exercised by CLB judiciously and having due regard to the facts and circumstances of each case and explanation offered it by a company and
then to form an opinion on the question whether the company has made out that it could not file intimation within the stipulated time due to inadvertence or come other sufficient cause. The provisions of section 141 do not arm the CLB to go into the merits of the charge or satisfaction of the charge in part or in full. [Mangalore Chemicals and Fertilisers Ltd. v CLB (2004) 51 SCL 251 (Kar)].
The delay in registering a charge after the Court condoned the delay in filing the particulars will not affect the validity and the binding nature of the mortgage on the company. [C.K. Siva Sankara Panicker v Kerala Financial Corpn. (1980) 50 Comp Cas 817 (Ker)].

No other way to escape from CLB.

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