Form 17 query

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PRANIT DALVI (Querist)
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12 March 2013 Charge Created on 1997
Actually the Charges has been satisfied on 22/03/2005 and we have got letter from Bank dated 05/03/2013 and i want to file Form 17 regarding Satisfaction of Charge.

...Date of satisfaction of charge in full ? Which Date should I put her......

Is there any problem, if file Form 17 today as t has been delayed beyond 5 years....

Please reply

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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12 March 2013 Though the charge has been satisfied on 22.03.2005, form 17 was not filed then which is required to be filed within 30 days from the date of satisfaction thereof.

In any case it is good for you that bank has issued letter on 05.03.2013 since you can file form 17 in current date otherwise you cannot file form 17 after 5 years without condonation of delay from CLB in which case likely to lead to penalty apart from additional filing fees.

Ajay Mishra

Ajay Mishra (Expert)
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12 March 2013 Hi

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).

In your case Form -17 should be filed within 30 days from 22.03.2005.

Ajay Mishra

Ajay Mishra (Expert)
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12 March 2013 Hi

You will face Penalty and covered under compounding.

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