Corporate and Other Laws · Registration of Charges

Modification, Satisfaction and Register of Charges

Updated 4 October 2026 · Fact-checked

After a charge is registered, three things follow. A modification must be registered (section 79). Payment in full must be reported to the Registrar within 30 days (section 82). The company must keep a register of charges at its registered office (section 85). Default attracts a penalty under section 86.

Understand Modification, Satisfaction and Register of Charges

A charge is security over a company's property for a debt. Registering it under section 77 protects lenders and warns other creditors. But a charge does not stay frozen. Its terms can change, the debt can be repaid, and the public record must reflect this. This topic covers that life after registration.

Modification. Section 79 says the registration rules of section 77 apply, so far as may be, to a company acquiring property that is already subject to a charge, and to any modification in the terms, conditions, extent or operation of a registered charge. So a change in the charge must be registered just like a new one. The form used in practice is CHG-1 (for company charges); the form number comes from the rules, not the section text.

Satisfaction. When the debt is paid in full, the company must tell the Registrar within 30 days of payment (section 82(1)). The Registrar can allow intimation within 300 days of payment on an application by the company or the charge holder, with additional fees. The Registrar then sends a notice to the charge holder asking for cause within a time not exceeding 14 days. If no cause is shown, a memorandum of satisfaction is entered in the register of charges and the company is told. No notice is needed if the intimation is in the specified form and signed by the charge holder. The form commonly used is CHG-4.

Registrar and Central Government. Under section 83, the Registrar can enter a memorandum of satisfaction (full or part) or of release of part of the property on evidence, even without intimation from the company. He must inform the affected parties within 30 days of making the entry. Under section 87, the Central Government can extend time for intimation, or rectify an omission or misstatement, if it was accidental, due to inadvertence or other sufficient cause, or not prejudicial to creditors or shareholders.

Register and penalty. Section 85 requires every company to keep a register of charges at its registered office, with a copy of each charge instrument. Members and creditors may inspect it free in business hours. Others pay the prescribed fee. The articles may impose reasonable restrictions. Section 86 penalises default: the company ₹5,00,000 and every officer in default ₹50,000. Willfully giving false information or suppressing material information about charges leads to action under section 447.

Key rules to remember

Modification of charge: Section 79: section 77 applies, so far as may be, to modification of a registered charge and to acquiring property subject to a charge; Registration of the modification follows the same route as a fresh charge. Form CHG-1 is used in practice.
Satisfaction of charge: time limit: Section 82(1): intimation to Registrar within 30 days of payment or satisfaction in full; extendable up to 300 days by Registrar on application with additional fees; The 300 days run from the date of payment or satisfaction. The Registrar allows it on application by the company or the charge holder.
Registrar's procedure on intimation: Section 82(2)-(3): notice to charge holder, cause within time not exceeding 14 days; no cause, memorandum of satisfaction entered; cause shown, note recorded; Notice is not needed if the intimation is in the specified form and signed by the charge holder.
Registrar's own power: Section 83: entry of satisfaction or release, in whole or in part, on evidence, even without company intimation; inform affected parties within 30 days; Covers part payment and part release of property too. Section 82(4) preserves this power.
Rectification: Section 87: Central Government may extend time or rectify omission or misstatement if accidental, inadvertent, other sufficient cause, or not prejudicial to creditors or shareholders; Application can be by the company or any person interested, on terms the Government thinks just. It does not itself remove liability for default under section 86.
Register of charges: Section 85: kept at registered office; copy of instrument kept along with it; free inspection for members and creditors; others on prescribed fee; The register includes all charges and floating charges affecting any property or assets of the company or any of its undertakings.
Penalty: Section 86(1): company ₹5,00,000; every officer in default ₹50,000. Section 86(2): false or suppressed information leads to section 447; The penalty applies to default in complying with any provision of the Chapter.

How to solve Modification, Satisfaction and Register of Charges questions

Use this method for any question on modification, satisfaction, rectification, register or penalty. Provision, facts, conclusion is the format that earns marks.

1Identify the event: modification of a charge, full or part payment, release of property, an omission or misstatement, or a register or inspection issue.
2Match it to the section: modification (79), satisfaction by company (82), Registrar's own entry (83), register (85), penalty (86), rectification (87).
3Pick out the dates and count days from the correct starting point, such as the date of payment, not the date of the loan or the charge.
4Check the time limits: 30 days normal, 300 days with Registrar's permission and fees for satisfaction.
5Check who is involved: company, charge holder, Registrar, Central Government, member, creditor or outsider.
6State the rule in plain words, apply it to the facts, then give a clear conclusion.
7If a default occurred, state the penalty on the company and on officers in default separately, with amounts.

Quickest way: Section-to-event mapping for MCQs and written answers

When to use it: Use when you have little time, especially for MCQs worth 1 or 2 marks where only the section, number or authority matters.

Memorise the pairs: 79 modification, 82 satisfaction, 83 Registrar's power, 85 register, 86 penalty, 87 rectification by Central Government.
Memorise the numbers: 30 days, 300 days, 14 days, 30 days for Registrar to inform, ₹5,00,000 and ₹50,000.
In MCQs, eliminate options with the wrong authority first. Rectification is by the Central Government, not the Tribunal or Registrar.
For inspection, remember: members and creditors free; others pay a fee.
In written answers, use three lines: Provision, Facts, Conclusion. Add the penalty line if there is a default.

Common mistakes in Modification, Satisfaction and Register of Charges

Saying satisfaction must be reported within 300 days as the normal rule.
Students mix up the main limit with the extended period.
Fix: The rule is 30 days from payment. The 300 days is only with the Registrar's permission on application, with additional fees.
Counting the 30 days from the date the charge was created.
The same 30 days appears in section 77 for registration.
Fix: For satisfaction, count from the date of payment or satisfaction in full.
Saying the Tribunal rectifies charge records.
Students link rectification to the Tribunal in other chapters.
Fix: Under section 87, the Central Government extends time or rectifies omission or misstatement.
Thinking only the company can get satisfaction recorded.
Section 82 speaks of company intimation, so section 83 is forgotten.
Fix: Under section 83, the Registrar can enter satisfaction or release on evidence even without intimation from the company.
Stating that any person can inspect the register free.
Students remember inspection but not the free and paid categories.
Fix: Members and creditors inspect without fees. Other persons pay the prescribed fee. The articles may impose reasonable restrictions.
Giving only one penalty figure.
Students forget the officer's penalty.
Fix: Write both: company ₹5,00,000 and every officer in default ₹50,000. Add section 447 for willful false or suppressed information.

Worked examples

Example 1

ABC Ltd. repaid in full a term loan secured by a registered charge on 1 March. The company informed the Registrar on 30 May of the same year, which is 90 days after repayment. Advise ABC Ltd. on the position and the likely consequence.

Show the solution

Provision: under section 82(1), a company must inform the Registrar of payment or satisfaction in full of a registered charge within 30 days of payment.
The proviso allows the Registrar, on application by the company or the charge holder, to permit intimation within 300 days of payment, on payment of additional fees.
Facts: the company informed the Registrar 90 days after repayment. This is beyond 30 days but within 300 days.
So the late intimation can be accepted only if the Registrar allows it on application with additional fees.
If the Registrar's permission is not obtained, the company is in default and section 86(1) applies: company ₹5,00,000 and every officer in default ₹50,000.
Section 87 lets the Central Government, on application, extend the time for intimation or rectify the record if the omission was accidental, inadvertent or for other sufficient cause, or not prejudicial to creditors or shareholders. It does not itself remove liability for default under section 86.

Answer: The 30-day limit has been missed. The company should apply to the Registrar for permission under the proviso to section 82(1), since 90 days is within 300 days, and pay additional fees. Without this, the company and its officers in default are liable to penalties of ₹5,00,000 and ₹50,000 respectively under section 86. Section 87 allows the Central Government to extend time or rectify the record on application, but it does not itself waive the section 86 liability.

Example 2

A member and a lender to XYZ Ltd. both ask to inspect the company's register of charges. A third person who is neither also asks. Can the company refuse any of them? State the law.

Show the solution

Provision: section 85(1) requires every company to keep at its registered office a register of charges with particulars of all charges and floating charges. A copy of each instrument of charge must be kept along with it.
Section 85(2): the register and instruments are open for inspection during business hours by any member or creditor without any fee.
Any other person may inspect on payment of the prescribed fee.
All inspection is subject to reasonable restrictions the company may impose by its articles.
Facts: the member and the lender are a member and a creditor, so they inspect free. The third person is an outsider, so he can inspect only on paying the prescribed fee.
Conclusion: the company cannot refuse any of them if they follow the rules, but can charge the outsider the fee and apply reasonable restrictions laid down in its articles.

Answer: The member and the creditor may inspect free in business hours. The third person may inspect on paying the prescribed fee. All three are subject to reasonable restrictions in the articles.

Exam tips

Learn the 30 days, 300 days and 14 days figures separately and know what each one belongs to.
In case studies, check the date of payment first. It decides whether the 30-day limit was met.
Write the penalty as two figures: ₹5,00,000 on the company and ₹50,000 on each officer in default.
Do not quote form numbers as law. Say the prescribed form, and add CHG-1 or CHG-4 only as the form commonly used.
For MCQs, link the authority to the action: Registrar for entries and condonation, Central Government for rectification.

Practice questions from Registration of Charges

Modification, Satisfaction and Register of Charges in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ExecutiveModification, Satisfaction and Related Filings

Modification, Satisfaction and Register of Charges: frequently asked questions

What is the time limit to report satisfaction of a charge under section 82?

The company must inform the Registrar within 30 days of payment or satisfaction in full. On application by the company or the charge holder, the Registrar may allow it within 300 days of payment on payment of additional fees.

Can the Registrar record satisfaction without the company's intimation?

Yes. Under section 83, the Registrar can enter a memorandum of satisfaction, in whole or in part, or a release of part of the property, on evidence to his satisfaction. He must inform the affected parties within 30 days of making the entry.

Who can inspect the register of charges?

Members and creditors can inspect it free during business hours. Any other person can do so on paying the prescribed fee. The company's articles may impose reasonable restrictions.

What is the penalty under section 86?

The company is liable to a penalty of ₹5,00,000 and every officer in default to ₹50,000. If a person willfully gives false or incorrect information, or knowingly suppresses material information required for section 77, action under section 447 follows.