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Microlesson · 5-min read

Power of Registrar to Make Entries of Satisfaction in Absence of Intimation (Section 83)

# Power of Registrar to Make Entries of Satisfaction in Absence of Intimation (Section 83)

## Purpose of Section 83

Section 83 empowers the Registrar to make entries with respect to satisfaction and release of charges even if no intimation has been received from the company.

This is a safeguard so that the register of charges reflects the true position even when the company defaults in giving intimation under Section 82.

## When Can the Registrar Act?

The Registrar may act if evidence is shown to his satisfaction that, in respect of any registered charge:

1. The debt secured by the charge has been paid or satisfied in whole or in part; OR

2. The part of the property or undertaking charged has been released from the charge; OR

3. Such property / undertaking has ceased to form part of the company's property or undertaking.

## What Memorandum Can the Registrar Enter?

In any of the above cases, the Registrar may enter in the register of charges a memorandum that:

1. The debt has been satisfied in whole or in part; OR

2. The part of the property or undertaking has been released from the charge; OR

3. Has ceased to form part of the company's property or undertaking.

## Information to Affected Parties

The Registrar shall inform the affected parties within 30 days of making the entry in the register of charges.

## Issue of Certificate

Where the Registrar enters a memorandum of satisfaction of charge in full, he shall issue a Certificate of Registration of Satisfaction of Charge in Form CHG-5.

## Key Contrast with Section 82

AspectSection 82Section 83
TriggerIntimation by company / charge-holderSuo motu action by Registrar on receiving evidence
Form filedCHG-4 (by company)No company filing
InformationAfter memorandum is entered, company is informedAffected parties informed within 30 days
CertificateCHG-5 (on full satisfaction)CHG-5 (on full satisfaction)

Worked example

### Example 1

Example: XYZ Ltd. repays a loan in full but fails to file CHG-4. The charge-holder bank produces evidence of full repayment to the Registrar. The Registrar, after satisfying himself, makes an entry of full satisfaction in the register and informs affected parties within 30 days. He also issues Form CHG-5.

### Example 2

Example: A part of the charged property (say, a parcel of land) is released under a partial release deed. The fact is brought to the Registrar's notice with evidence. The Registrar may enter a memorandum that the part of property has been released — even without the company's intimation.

⚠️ Common exam mistakes

  • Believing satisfaction can only be entered on the company's application — Section 83 expressly allows Registrar action on evidence.
  • Forgetting the 30-day notice to affected parties.
  • Assuming CHG-5 is issued for partial satisfaction — it is issued only for satisfaction in full.
  • Confusing Sections 82 and 83 — the distinguishing factor is whether the company has filed intimation.
Bare-Act text Section 83 · The Companies Act, 2013 · click to expand
The Registrar may, on evidence being given to his satisfaction with respect to any registered charge,— (a) that the debt for which the charge was given has been paid or satisfied in whole or in part; or (b) that part of the property or undertaking charged has been released from the charge or has ceased to form part of the company's property or undertaking, enter in the register of charges a memorandum of satisfaction in whole or in part. The Registrar shall inform the affected parties within thirty days of making the entry in the register of charges.
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