Section 82 of CA 2013 : Section 82: Company To Report Satisfaction Of Charge

Explanation using Example

Imagine that XYZ Pvt. Ltd. took out a loan from ABC Bank and secured it against the company's property by creating a charge. After a few years, XYZ Pvt. Ltd. managed to pay off the entire loan amount to ABC Bank. According to Section 82(1) of The Companies Act, 2013, XYZ Pvt. Ltd. is now required to inform the Registrar of Companies (RoC) that the charge has been fully satisfied within 30 days of the loan repayment.

However, if XYZ Pvt. Ltd. misses this 30-day deadline, they can still notify the RoC within 300 days of the satisfaction of the charge, but they will have to pay additional fees for the delay, as mentioned in the proviso to Section 82(1).

Once the RoC receives the intimation, as per Section 82(2), they will contact ABC Bank, asking them to provide any reasons why the charge should not be considered satisfied. If ABC Bank does not respond within 14 days or confirms the satisfaction of the charge, the RoC will update the register of charges to reflect that the charge has been fully paid and inform XYZ Pvt. Ltd. accordingly.

If ABC Bank contests the satisfaction of the charge, as outlined in Section 82(3), the RoC will make a note in the register of charges and notify XYZ Pvt. Ltd. of the same.

Lastly, Section 82(4) clarifies that the RoC has the authority to update the register of charges based on information received from other sources, not just the company.