CONDONATION OF DELAY:
Section 77 states It shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation
MEANING OF CHARGE: The Companies Act, 2013 defines a Charge as an interest or lien created on the assets or property of a Company or any of its undertaking as security and includes a mortgage U/s 2(16).
CREATION OF CHARGE:
- Form CHG-1 is required to be filed within 30 days for Creation of Charge.
- If Company fails to create the Charge within 30 days then Company is allowed to file the same within 300 days as per Section 77(1) of the Companies Act, 2013.
- If Company fails to file within 300 days for Creation of Charge then Company is required to seek time under Condonation Delay i.e.u/s 87.
SATISFACTION OF CHARGE:
- Form CHG-4 is required to be filed within 30 days from date of such payment or Satisfaction of Charge
- If the same is not filed within 30 days then procedure for Condonation of Delay is required to be complied.
CONCLUSION: Additional 300 days would be given in the case of Creation of Charge if it is not filed in 30 days, however, no such thing is there in satisfaction of Charge. If satisfaction is not filed within 30 days, directly go for condonation u/s 87 of Companies Act, 2013.
PROCEDURE FOR CONDONATION:
|1. Company will file Form CHG 1/CHG-8 as applicable with additional fees for delay in filing the form. Once filed, the status of the Form would be shown as Pending for INC-28.|
|2. Convey a Board Meeting and pass a Resolution to authorize any other person to file all the documents, petition as required. Prepare a Petition as required for filing the same with ROC.|
|3. Attach the Petition and Copy of the Board Resolution in Form GNL-1 which is to be filed with ROC. Pay the fees as applicable. |
Points to be covered in Petition: Details of Petition, Object clause of Company, Relief Soughts, details of the delay in filing, reason for delay, Interim order if any prayed for.
|4. Post filing of Form GNL-1, Form CHG-8 (Form for Condonation of Delay) is required to filed with ROC, in which the paid challan of GNL-1 will be attached.|
|5. Attachments for CHG- 8: |
• Memorandum of Appearance for appearance on stamp paper of Rs 100/- (To be notarized)
• Affidavit on stamp paper of Rs 100/- (To be notarized).
• Certified True Copy of Board Resolution authoring the Director/Professional.
• Paid challan of Form GNL-1.
• Form CHG-4/CHG-1 as filed with the ROC.
• Petition on 100Rs stamp paper and the set to be taken on legal paper.
|6. Attach all the above documents in Form CHG-8 and file the Form with ROC. Pay the fees as applicable.|
|7. After filing all the above Forms, RD will call for hearing where order for Condonation of delay will be passed with the additional Fees. The fees need to be paid to ROC with reference to SRN No in the miscellaneous fee payment.|
|8. Post payment of Fees, file INC-28 with the ROC WITH THE Following attachments |
• Copy of the Order as passed.
• Payment challan of the additional fees levied during the passing of the order of Condonation of Delay.
|9. Once INC-28 is filed, procedure for Condonation of Delay comes to end.|
Please refer all the relevant section, rules, notifications, amendments as applicable. The Author is not responsible for any losses incurred.
Content is merely for sharing knowledge. Author can be reached at firstname.lastname@example.org or 9819244185.