Section 138 or 139 and 141 Companies Act, 1956

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Sumit Agrawal (Querist)

18 February 2009 When a Company fails to file intimation of Charge Satisfaction u/s 138.

In this regard section 139 states that the ROC has the power to make entries of satisfaction and release in absence of intimation from a Company.

Would section 141 still be applicable.

And what would be the procedure.

Please Explain?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

18 February 2009 You have to file charge of satisfaction within 30days from the closure of the loan.

If you have failed to do so, now you have to file the form, the form will be accepted but with a condition that you should get condontaion from the company law board.

You have to file a petition to company law board stating the reasons for delay.

Based on the facts the bench of company law board will accept the delay and condone the delay.

Then your charge satisfaction is over.

Section 139 will be applicable when the company has settled the debt and the person or company who have given loan is not willin to sign the forms.

Section 141 is being followed for condoning the delay through company law board.

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