Satisfaction of charge

This query is : Resolved

ABHIJIT DAS (Querist)
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24 February 2014 I have some simple queries in respect of procedural aspect of filing of Form 17.

Is e'fillilg of form 17 is mandatory ?

If yes, then pl refer or quote the specific provision of Act or Rules, as amended.

Pl. also provide the effective date. If the Bank issues a 'No Dues Certificate', will it do with ROC in satisfying the charge?

CS Adnan Shaikh

CS Adnan Shaikh (Expert)
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25 February 2014 Yes it is mandatory.

Please refer to section 138 of the Companies Act, 1956.

You can take a No dues certificate and file it within 30 days.

ABHIJIT DAS

ABHIJIT DAS (Querist)
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25 February 2014 I convey my best regards to Mr. Shaikh for attempting to help me out of this query and also remain thankful to the wonderful platform being provided by CCI.

My humble query remains unfinished in as much as that Mr. Shaikh asked me to refer Section 138 of the Old Act which reads as under:
"138. COMPANY TO REPORT SATISFACTION AND PROCEDURE THEREAFTER
(1) The company shall give intimation to the Registrar of the payment or satisfaction, in full, of any charge relating to
the company and requiring registration under this Part, within thirty days from the date of such payment or satisfaction.
(2) The Registrar shall, on receipt of such intimation, cause a notice to be sent to the holder of the charge calling upon
him to show cause within a time (not exceeding fourteen days) specified in such notice, why payment or satisfaction
should not be recorded as intimated to the Registrar.
(3) If no cause is shown, the Registrar shall order that a memorandum of satisfaction shall be entered in the register of
charges.
(4) If cause is shown, the Registrar shall record a note to that effect in the register, and shall inform the company that
he has done so.
(5) Nothing in this section shall be deemed to affect the power of the Registrar to make an entry in the register of
charges under section 139 otherwise than on receipt of an intimation from the company."
Nothing is mentioned therein that e'filing of Form 17 is mandatory.
My query lies there.
A right direction is solicited.
With regards to all concerned.

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CS Adnan Shaikh

CS Adnan Shaikh (Expert)
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26 February 2014 Dear Abhijit,

Please read subsection (1) carefully which says "intimation to the Registrar'. This intimation is conveyed through Form 17.

Apart from thinking legally, we have to think logically. If you do not file Form 17 for satisfaction of charge, the details of the charges of the Company will be displayed on the website of MCA, even if you have settled off the amount in complete, which is not correct.

Other expert views invited.

Regards,
Adnan

ABHIJIT DAS

ABHIJIT DAS (Querist)
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26 February 2014 Dear Adnan,
I appreciate the way u directed me to understand. My point is very simply how I could I ascertain from the Act or Rules or circular of mca that "E'FILLING" is mandatory.
Regards
Abhijit.