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CS Executive · Company Law and Practice · Charges

Mahadev Steels Ltd gave no intimation to the Registrar, but the lender of a registered charge furnished evidence that part of the charged property had been released and had ceased to form part of the company's property. Which statement is correct?

The Registrar may, on evidence satisfying him, enter a memorandum of partial release in the register of charges even though the company gave no intimation. He must then inform the affected parties within thirty days of making the entry.

  1. AThe Registrar cannot act without an intimation from the company
  2. BThe Registrar may enter a memorandum of partial release on being satisfied by evidence, and must inform the affected parties within thirty days of making the entryCorrect
  3. CThe Registrar may enter the memorandum but only for full satisfaction of the debt, not for part release
  4. DThe Registrar may enter the memorandum only after the Central Government directs rectification

Explanation

Section 83 empowers the Registrar, on evidence to his satisfaction, to enter a memorandum of satisfaction in whole or part, or of release of part of the property, even without intimation from the company. He must inform the affected parties within thirty days of making the entry. Hence the other options are wrong.

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