New Forms Charge Creation / Modification / Satisfaction
Companies Act, 2013 And Companies (Amendment) Ordinance, 2018

Introduction:

At the time of introducing Companies Act, 2013;

  • Charge Satisfaction form required to be submitted with ROC within 30 days of Satisfaction. If not, then Company have to file application of compounding with Regional Director.
  • The said limit of 30 days increased upto 300 days by The Companies Amendment Act, 2017 to balance it with Creation/Modification of Charge.
  • However, Companies (Amendment) Ordinance, 2018 have changed the period for Creation/Modification of charge significantly in order to make compliance timely.

Impact of Ordinance:

Before Ordinance

After Ordinance

Impact On Creation Of Charge
Section 77 of Companies Act, 2013;

Creation of charge with ROC within 30 days of creation of charge.

Section 77 of Companies Act, 2013;

Creation of charge with ROC within 30 days of creation of charge.

Extension by Registrar;

On an application made by the company, Registrar may extend such period by 270 days of charge creation on payment of additional fees as may be prescribed.

Extension by Registrar;

On an application made by the company, Registrar may extend such period by 30 days of charge creation on payment of additional fees as may be prescribed.

Condonation;

If registration is not made within 300 days of charge creation, The Company shall seek extension of time in accordance with Section 87.”

Instead of Condonation;

If the registration is not made within the period specified, the Registrar may, on an application, allow such registration to be made within a further period of Sixty Days after payment of such ADVALOREM fees as may be prescribed.

Final Outcome and Conclusion:

1. As per ordinance, there is no way for Condonation for Creation/Modification of Charge under Companies Act after 02.11.2018.

2. After 02.11.2018, form can be filed as per prescribed time with such additional fees plus ADVALOREM fee as may be prescribed.

3. Fees as per table mentioned below;

Stage Particulars Time Period Days Fees
1 Registration of Charge with
ROC
Within 30 days of creation 0+30 = 30 Days Normal Fees
2 If fails to file within 30 days Within a period of 60 days of such
creation
30+30 = 60 Days Normal Fees
+
Additional
Fees
3 If fails to file within 60 days Registrar may, on an application made by the Company, allow such registration to be made within a further period of 60 days 30 +30 + 60 = 120 Days Normal Fees
+
Additional
Fees
+
ADVALOREM
FEES
After Ordinance i.e. 02.11.2018 Clause Relating To Condonation Of Delay In Creation/ Modification Of Charge Has Been Removed From Section 87.

Impact On Satisfaction Of Charge

If charge is satisfied even before or after 02.11.2018 in such case following shall be period for filing of e-form CHG-4 for satisfaction of charge with ROC.

Table Stating facts in relation to satisfaction of charge;

STAGE PARTICULARS TIME PERIOD DAYS FEES
 

1

Satisfaction of Charge with
ROC
Within 30 days of Satisfaction 0+30 = 30 Days Normal Fees
 

2

If fails to file within 30 days Within a period of 300 days of such Satisfaction 30+270 = 300 Days

Normal Fees

+

Additional Fees

 

3

If fails to file within 300
days
Filing of form with RD for satisfaction of Charge 30+270+∞∞= ∞∞

Normal Fees

+Additional Fees
+
CONDONATION
FEES

Provisions For Condonation Of Delay In Satisfaction Of Charge Is Still There In Act Even After Ordinance.

Author Bio

Qualification: CS
Company: N/A
Location: Rajasthan, IN
Member Since: 07 May 2019 | Total Posts: 1

More Under Company Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031