Skip to content

CS Executive · Company Law and Practice · Charges

Sundaram Textiles Ltd repaid in full a term loan secured by a registered charge on 10 March. The company did not file the intimation of satisfaction within 30 days. On 20 May, it applied to the Registrar, supported by the charge holder. Which statement correctly reflects the Companies Act, 2013?

The Registrar may allow the intimation of satisfaction within 300 days of payment, on payment of the prescribed additional fees, when the company or the charge holder applies. The 30-day period is not final, and the application here falls well within 300 days.

  1. AThe Registrar may allow the intimation within 300 days of the payment on payment of additional feesCorrect
  2. BThe charge stays on the register permanently because 30 days have lapsed
  3. COnly the Central Government can accept the intimation after 30 days, and the Registrar has no power to do so
  4. DThe Registrar must reject the application as the charge holder, not the company, must file it

Explanation

Under section 82(1), intimation of payment or satisfaction is due within 30 days. The proviso lets the Registrar, on application by the company or the charge holder, allow it within 300 days of payment on payment of additional fees. The 20 May application is about 71 days after payment, so it is within that window. The other options wrongly deny the Registrar this power.

Did you get it right without looking?

One question tells you little. A timed set on Charges shows your real accuracy, how long you take and where you lose marks.

Practise ChargesFree diagnostic mock

More Charges questions