A company upon payment or satisfaction in full of any charge registered under Chapter VI of the Companies Act 2013 shall give intimation of satisfaction to the Registrar of Companies. The procedure for applying for the certificate of satisfaction of charges registered under the companies act is as under.
Letter of the charge holder stating that the amount has been satisfied (NOC from Charger holder (Bank/Financial Institution). The date of satisfaction of charge should be the date as written in the NOC received from the Charger holder (Bank/Financial Institution). The Company or Charger holder (Bank/Financial Institution) both can file Form CHG 4 to ROC for the satisfaction of the Charge.
The form will be processed by the office of the Registrar of Companies so the approval of this Form is dependent on the ROC. Certificate Certificate of satisfaction of charge is generated after the eForm is registered with the authority concerned and sent to the user as an attachment to the email id of the company.
The company shall approach the lender bank/financial institution to issue a ‘letter of satisfaction’ stating that no dues exist from the company towards credit facilities provided by them. After getting the letter of satisfaction from the bank/financial institution, the company has to conduct a board meeting. In the meeting, the board has to pass a resolution authorizing a Director /Company Secretary or any other authorized person to file the satisfaction of charge (CHG-4) with ROC. The entries of satisfaction of charges are to be made in the register of charge maintained by the company in form CHG-7 format which shall be authenticated by a Director/ Company Secretary or any other authorized person. The company shall give intimation to ROC within a period of thirty days from the date of the satisfaction of the charge. The resolution passed copy and the letter of satisfaction issued by the bank/financial institution to be attached to CHG-4 along with the fee for the registration of the satisfaction charge. The memorandum of satisfaction (certificate of satisfaction) of the specified charge will be issued by ROC in form No.CHG-5.
MCA vide Companies (Registration of Charges) Second Amendment Rules, 2022 dated 29th August 2022 notifies revised Form No. CHG-1, Form No. CHG-4, Form No. CHG-6, Form No. CHG-8 and Form No. CHG-9. Further, it also notifies rule 13 for the Signing of charge e-forms by insolvency resolution professionals or resolution professionals or liquidators for companies under resolution or liquidation.
Original post dated 10.05.2017 modified and reposted.
Charge registration under the companies act
Effects of non-registration of charge
Effects of charge registration under the companies act
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Meaning of pari passu Charge
Meaning of fixed charge, floating charge, and crystallization of charge