Condonation was a term used in common law as a forgiveness by the husband of his wife, or by wife of her husband, of adultery committed, with an implied condition that the injury shall not be repeated and that the other party shall be treated with conjugal kindness. The same way Companies Act governs the provisions relating to Condonation of Delay with regards to the relevant Provision of its Act. Condonation of delay with regards to companies Act, 2013 refers to forgiveness asked by the applicant for non-filing of any document or application with either the Central Government or the Registrar within the prescribed time giving relevant explanation for such delay.
SECTION 460: CONDONATION OF DELAY IN CERTAIN CASES
Section 460 states that any company:
- On Non-filing of any application required to be made to the Central Government under any provision of this Act within the time specified therein would allow such government to condone the delay after providing reason for such.
- On Non-Filing of document required to be filed with the Registrar under any provision of this Act is within the time specified therein, the Central Government may, for reasons to be recorded in writing, condone the delay.
SATISFACTION OF CHARGE
As per Section 82 of the Companies Act, 2013, every company shall give intimation to the Registrar in the prescribed form (i.e., CHG-4), of the payment or satisfaction in full of any charge registered within a period of thirty days from the date of such payment or satisfaction. However, the Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period of three hundred days of such payment or satisfaction on payment of such additional fees as may be prescribed.
Therefore, the maximum time prescribed under the Act for filing of CHG-4 for satisfaction of Charge would amount to total of 300 days from the payment or satisfaction. However, on delay of more than 300 days the provisions of Section 87 would be attracted thereby resulting in companies making an application to Central Government for condonation of such delay with the Central Government.
PROCESS FOR CONDONATION OF DELAY WITH RESPECT TO SATISFACTION OF CHARGE:
1. Convene Board Meeting and authorise a Professional for making an application for condonation of Delay with Central Government.
2. Preparing of an Application to be filed to Central Government.
3. Filing of FORM CHG-8 to the central Government with the following:
- Board Resolution authorizing a professional to appear on its behalf.
- Documentary evidence of creating/modifying/satisfying the charge
- Application with reasons for such delay.
- Affidavit indemnifying petition;
- Memorandum of Appearance;
- Any other document as may be required.
4. Central Government may extend the time for intimation to registrar on being satisfied that the delay was accidental or due to inadvertence or some other sufficient cause.
5. The order as received by the central government shall be filed in Form INC-28 within 30 days of date of such order.
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This article is written by Team Anupama Tripathi & Associates, for purely comment and education purpose, you can write us: #[email protected] or at # 8800839633
Author Bio
Hi, we have failed to file modification of charge within 120 days so now if we go for condonation so what is the procedure.