Condonation of Delay for creation Modification or Satisfaction of Charge
July 12, 2019
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Procedure for Satisfaction of charge
Meaning of Charge
Sec 77 and sec 87 of the Companies Act, 2013 deals with charges. “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.
Basically there are two types of loans Secured Loans granted by banks and Financial institutions against security of assets by the Company. Unsecured Loans taken from directors or related parties of the Company.
Thus when a company borrows secured loan from any financial institution like banks in lieu of mortgage of Assets of the Company like pledging of shares or any property of company whether movable or immovable then the same shall needs to be intimated to Registrar of Companies (ROC). The Company shall intimate to ROC within 30 days from the date of creation of Charge.
Satisfaction of Charge
When any company borrows any secured loan from any banks or financial institution and repays the same then it is termed as “Satisfaction of Charge” Thus as it is mandatory to report ROC regarding borrowing any loans in form CHG-1 similarly on repayment of loan it is mandatory to report ROC regarding satisfaction of such charge in form CHG-4.
Due date for Filing Form CHG-4
Form CHG-4 shall be filed within 30 days from the date of satisfaction of charge as per sec 82(1) of the Companies Act, 2013 and Rule 8(1) of Companies(Registration of Charges) Rules, 2014. Due date for Form CHG-4 is 30 days.
Procedure for Filling of form CHG-4 with ROC
Form CHG-4 can be downloaded from www.mca.gov.in. Go to MCA services Tab, then click on Company Form download.
| Step 1: Conduct Board Meeting |
When any company repays the secured loan borrowed from any bank or financial institutions, a board meeting needs to be conducted by directors of Company for Intimating the same to ROC within 30 days from the date of satisfaction of charge.
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| Step 2: Filling of Form form CHG-4 |
Form CHG-4 needs to be filed with ROC along with following documents- Documents for form CHG-4
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Contents of Form CHG-4
Following information is required to be filled in form CHG-4
- CIN of the Company (Corporate Identification Number)
- Charge creation identification (ID)number
- Particulars of charge holder or ARC or assignee
- Particulars of creation of original charge or subsequent modifications
- Date of satisfaction of charge in full
Fees Details CHG-4 Satisfaction of charge
The fees for creation of Charge are provided as per the companies (Registration of offices and Fees) Rules, 2014
I. Fees for Companies Having Share Capital
| Nominal Share Capital | Fees applicable |
| Less than 1,00,000 | Rs 200 |
| 1,00,000 to 4,99,999 | Rs 300 |
| 5,00,000 to 24,99,999 | Rs 400 |
| 25,00,000 to 99,99,999 | Rs 500 |
| 1,00,00,000 or more | Rs 600 |
II. Fee for Company not having Share Capital
In case company not having a share capital, the fee for intimating the satisfaction of Charge by the company to the Registrar is Rs.200 per document.
Additional Fees for CHG -4
| Period of Delay | Fees Applicable |
| Up to 30 days | 2 times of normal fee |
| More than 30 days and up to 60 days | 4 times of normal fee |
| More than 60 days and up to 90 days | 6 times of normal fee |
| More than 90 days and up to 180 days | 10 times of normal fee |
| More than 180 days | 12 times of normal fee |
Condonation of Delay for Satisfaction of Charge CHG -4
Where any charge form CHG-4 is not filled within 300 days (30 days Plus 270 days as per sec 441 of the Companies Act, 2013) from the date of satisfaction of charge the Registrar shall not register the same unless the delay is condoned by the Central Government. Without Condonation of delay charge cannot be registered with ROC.
