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CS Executive · Company Law and Practice · Charges

Registered charge of Orion Pharma Ltd secured a debt. The Registrar gets evidence that the debt was paid in part and that one of two charged plots was released, though the company has sent no intimation. What may the Registrar do, and what must follow?

The Registrar may, on satisfactory evidence, enter a memorandum of partial satisfaction and of the release of the plot even without intimation from the company, and must inform the affected parties within thirty days of making the entry.

  1. AEnter a memorandum of satisfaction in part and of release of the plot, and inform the affected parties within thirty days of the entryCorrect
  2. BDo nothing until the company files intimation
  3. CEnter satisfaction only if the debt is paid in full, and inform parties within fourteen days
  4. DCancel the entire charge and inform only the company within sixty days

Explanation

Section 83(1) lets the Registrar, on satisfactory evidence, enter a memorandum of satisfaction in whole or in part, or of release of part of the property, even without intimation from the company. Section 83(2) requires him to inform the affected parties within thirty days of making the entry. Full payment is not required, and fourteen days is the show-cause period under section 82, not this one.

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