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Satisfaction of Charge

RAHUL (Company secretary ) (226 Points)

08 January 2011

Hi All Friends.

Please help me

time limit for filing satisfaction of charge if form 17 will not file with 17in prescribed time limit. What are the effect of company. If company file form 17 after 1 year what are the procedure followed by company.

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6 Replies

udit sharma (Company Secretary) (2303 Points)
Replied 08 January 2011

In accordance with the provisions of section 138 of the Companies Act, 1956 Form 17 must be filed within 30 days of the satisfaction of charge and not 30days from the date of No dues letter issued by the Charge Holder.

Any delay beyond a period of 30days, u have to make a petition before Company Law Board under section 141 of the Companies Act, 1956 for condonation of delay.

On receipt of CLB Order, file a certified true copy of the CLB order in Form 21 within 30 days from the date of issue of certified true copy of the CLB Order.

Once Form 21 gets approved, u can file Form 17 for satisfaction of charge.

Regards

CS Udit Sharma

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LALIT MOHAN SHARMA (PCS) (22 Points)
Replied 25 February 2011

The company has repaid loan in 1980 but has not satisfied the charge in Form 17. I approached to the Financial Institution foe getting NOC as on date. On which I got the certificate as on date no dues is outstanding against the company. But the Manager refused to sign digitally form 17 with the date of the certificate i.e. 01.02.2011 and stated that he can signed Form 17 when back date of 1980 is to be written in Form 17.

Kindly Advice.

Thanks in Advance

CS.Lalit Mohan Sharma

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 25 February 2011

Originally posted by : LALIT MOHAN SHARMA
	The company has repaid loan in 1980 but has not satisfied the charge in Form 17. I approached to the Financial Institution foe getting NOC as on date. On which I got the certificate as on date no dues is outstanding against the company. But the Manager refused to sign digitally form 17 with the date of the certificate i.e. 01.02.2011 and stated that he can signed Form 17 when back date of 1980 is to be written in Form 17. Kindly Advice. Thanks in Advance CS.Lalit Mohan Sharma

Hello Mr Lalit,

In my Opinion, Request Bank officials to Issue and sign current date, bcoz other banks normally agree.

We had similar situation, where delay was done but not for 20yrs, and they agreed.

Ensure if they give noc on current date, then they do not mention the loan was paid in 1980.

If Bank dont agree then file petition with CLB, thats the only option available to my knowledge.

Other views appreciated.

regards

Santosh Shah.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 26 February 2011

Fully agree with Santosh....

Neha Gupta (PCS) (377 Points)
Replied 26 February 2011

Yes Absolutely agreed with Santosh Ji. Either aapproach to bank again or file CLB petition these are only two available solutions in this case. As time gap is very long you have to pay Big panelty and cost amount on CLB order. So better request the Bank to digitally sign the Form.