Edge Ltd. had borrowed ₹50 crore from a scheduled bank and repaid entire loan amount along with interest thereon. The company wants to file satisfaction of charge with the Registrar only after receiving no due certificat

Section 82 of the Companies Act, 2013 read with rule 8 of the Companies (Registration of charges) Rules, 2014: Satisfaction of Charge is another important aspect relating to debts secured by a charge. In case of a full and complete payment of the secured charge registered with the Registrar, the company or charge-holder shall within a period of 30 days from the date of payment or satisfaction in full of any charge registered under Chapter VI of the Companies Act, 2013, give intimation of the same to the Registrar in Form No. CHG-4 along with the prescribed fees. 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 300 days of such payment or satisfaction on payment of such additional fees as may be prescribed. On receipt of such intimation, the Registrar shall issue a notice to the holder of the charge calling upon him to show cause within such time not exceeding 14 days, as may be specified in such notice, as to why payment or satisfaction in full should not be recorded as intimated to the Registrar. If no cause is shown, by such holder of the charge, the Registrar shall order that a memorandum of satisfaction shall be entered in the register of charges maintained by the registrar under section 81 and shall inform the company, that he has done so. If the cause is shown to the Registrar, he shall record a note to that effect in the register of charges and shall inform the company accordingly. However, the aforesaid notice shall not be sent, in case intimation to the Registrar is in specified form along with the Letter of the charge holder stating that the amount has been satisfied, which is a mandatory attachment in all cases of Form CHG -4 and is signed by the holder of charge [Proviso to Section 82(2)] Hence, filing of satisfaction of charge after clearance of entire dues of the bank does not depend on obtaining no due certificate from the bank and in absence of which the Registrar will get it confirmed from the lending bank. Hence, Edge Ltd. should have filed the same within the time limit and the ROC would have obtained the confirmation thereto from the bank. The company may therefore file it with payment of additional fees for delayed filing of satisfaction of charge.