CHG-8 Condonation Of Delay Under Companies Act 2013

CONDONATION OF DELAY AND RECTIFICATION OF REGISTER OF CHARGES AS PER RULE 12 OF COMPANIES REGISTRATION OF CHARGES RULES, 2014

Since there is lot of confusion over the filing of the CHG-8 form for condonation of delay of charge on creation, modification and satisfaction, this article will help professionals to deal with condonation of delay and rectification of register of charges.

Introduction:-

According to section 77,if any company fails to register charges or where the instrument creating or modifying a charge is not filed within a period of three hundred days from the date of its creation (including acquisition of a property subject to a charge) or modification.

According to section 86, if any company fails to register satisfaction of charges after its full payment or where the satisfaction of the charge is not filed within thirty days from the date on which such payment of satisfaction, the Registrar shall not register the same unless the delay is condoned by the Central Government.

When the question of Condonation of Delay would arise……?

The question of condonation delay would arise in the following two situations:

1. Any company fails to register charges with Registrar of Companies (ROC) on the event of creating or modifying charges within a period of 300 days from the date of creation or modification.

For creation and modification of charges, one should file the CHG-1 form after expiry of 30 days but not beyond 300 days from the date of creation or modification of charge (In this case condonation of delay would arises only after 300 days).

Any company can file CHG-1 form with ROC with additional fee from 30 days to 300 days but once 300 days are over from the date of creation or modification, then the Company has to file CHG-8 for Condonation of Delay with Central Government (Regional Director)

2.  Any company fails to register charges with Registrar of Companies (ROC) on the event of Satisfaction of full amount of the charge within 30 days from the date of fully payment or satisfaction of charge.

For satisfaction of charges, one should file the CHG-4 form after expiry of 30 days with additional fee. (In this case there is no 30 days and 300 days criteria,) once 30 days are over from the date of   satisfaction or fully payment of amount, then the Company has to file CHG-8 for Condonation of Delay with Central Government (Regional Director).

How to file CHG-8 condonation delay form with ROC…?

Step 1:- Conduct a Board Meeting a pass a resolution to make an application with concerned Regional Director.

Step 2:- Fill CHG-8 form- CHG-8 is a physical form that has to be filled by physically.

Step 3:- Prepare a petition which has to be filed with Regional Director (RD)

Step 4:- Prepare an affidavit verifying petition by any one of the director of the company (It has to be taken on e stamp)

Step 5:- Prepare a memorandum of appearance to represent the company before RD (Authorize PCS/PCA/Advocate or Directors)

What are the forms to be filed with ROC in this regard……..?

The following three forms will have to file with ROC

1. Form GNL-2 to file other documents

Attachments: –

(i) Form CHG-8

(ii) RD Petition + Affidavit +Memorandum of appearance (all together in one document)

(iii) CHG-4 with Payment challan (which is filed earlier)

2. Form RD -2– once the GNL-2 filed, then the company has to file RD-2 form with MCA.

Attachments:-

(i) Form CHG-8

(ii) RD Petition + Affidavit +Memorandum of appearance (all together in one document)

(iii) CHG-4 with Payment challan (which is filed earlier)

(iv) GNL2+Payment challan.

*keep checking the SRN status of the RD form, most of the cases MCA intimate to resubmit the form.

3. Form INC-28- Once the RD form approved or order released by the Regional Director, then the company has to file such RD order in INC-28 form within 30 days.

Attachment:- RD order.

Suggestion:- Filing a condonation delay form with MCA is a clumsy and slight difficult process, one should take expert (Company Secretaries) opinion to deal in this matter.

Suggestion, Clarifications and Comments are Welcome

{About Writer:- CS Lohith (CSLoGo) is a Company Secretary from Bangalore and can be contacted at Whats App +919535714303 or email- lohith7k@gmail.com

Disclaimer: The entire contents of this document have been prepared on the basis of relevant sections, provisions and rules as per the Companies Act 2013. Full efforts have made to provide correct and authentic information, the writer suggested that kindly cross-check the relevant sections, rules under the Companies Act, 2013 for better view and understanding. The observations of the writer are personal view and the writer do not take any responsibility of the same and this cannot be quoted before any authority without the written consent of the writer.}