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Procedure for Condonation of Delay for creation Modification or Satisfaction of Charge

Meaning of Charge

“Charge” is defined as-

“Interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. Charge is created on assets of the Company and such assets are defined in Schedule III of the Companies Act, 2013.

Condonation of Delay

Condonation of delay means extension of prescribed period in certain cases.

As per Rule 12(1) where the instrument creating or modifying a charge is not filed within a period of three hundred days from date of creation/Modification/Satisfaction, Registrar shall not register the same unless the delay is condoned by the Central Government.

As per sec 460 of the Companies Act, 2013-

(a) where any application required to be made to the Central Government under any provision of this Act in respect of any matter is not made within the time specified therein, that Government may, for reasons to be recorded in writing, condone the delay; and

(b) where any document required to be filed with the Registrar under any provision of this Act is not filed within the time specified therein, the Central Government may, for reasons to be recorded in writing, condone the delay.

Due Date for Creation of Charge

Form CHG-1 shall be filed within 30 days from the date of creation or modification of charge

Circumstances for Non Filling of form CHG-1

If Form CHG-1 is not filled within 30 days from date creation or modification of charge there can be two circumstances-

1. Failure of Company to file within 30 days

In case a company fails to file form CHG-1 within 30 days, a period of more 270 days is allowed. Till 300 days from the date of creation of charge, a company can any time file form CHG-1 by payment of additional fees along with normal filling fees

2. Failure of Company to file within 300 days

If the company fail to file form CHG-1 within 300 days from the date of creation of charge then in such  case it has to mandatory go for compounding of offence with the Central Government i. e Regional Director

Procedure for Condonation of Delay for creation Modification or Satisfaction of Charge

Convey a Board meeting and pass a resolution authorising one of the director and Professional for making petition and other requisites for Condonation of delay

Step 3

File Form GNL-2 with the Registrar of Companies (ROC)

Documents :
1.      CTC Board resolution regarding condonation of delay for filling E  form

2.      Form Chg 1/Chg 4 form and its Challan

3.      Petition before Regional Director on 100 Rs stamp paper and the set to be taken on legal paper.

4.      Affidavit on stamp paper of Rs 100/- (To be notarized).

5.      Affidavit verifying the petition

6.      Memorandum of appearance on stamp paper of Rs 100/- (To be notarized)

7.      MOA and AOA of the Company

1.      CTC Board resolution regarding condonation of delay for filling E  form
2.      CHG 1/CHG 4 form and its Challan
3.      Form GNL 2 and Challan
4.      Hyphenation deed for the creation of charge
5.      No due certification in case of satisfaction of a charge
6.      Petition before Regional Director on 100 Rs stamp paper and the set to be taken on legal paper.
7.      Affidavit on stamp paper of Rs 100/- (To be notarized).
8.      Affidavit verifying the petition
9.      MOA and AOA of the Company

Step 5

File INC-28 with the ROC within 30 days of passing order

Documents

1.      Copy of order
2.      Challan of penalty

Conclusion: The company shall file form CHG-1/CHG-4 within 300 days from the date of creation or modification or Satisfaction of charge in order to avoid condonation of delay with the Central Government.