# Rectification by Central Government of Register of Charges (Section 87)

## Power Delegated to Regional Director

Section 87 empowers the Central Government (now power is delegated to the Regional Director) to order rectification of Register of Charges in cases of default.

## When Can Rectification Be Ordered?

Rectification can be ordered in the following cases of default:

1. Omission in giving intimation to the Registrar with respect to payment or satisfaction of charge within the specified time; OR

2. Omission or mis-statement of any particulars in any filing previously made to the Registrar.

The filing may relate to:

Any charge, OR
Any modification of charge, OR
Any memorandum of satisfaction, OR
Other entries under Section 82 or Section 83.

## Grounds on Which Central Government May Grant Relief

The Central Government must be satisfied that:

(a) Such omission to do so within the prescribed time:

(i) Is accidental; OR
(ii) Is due to inadvertence; OR
(iii) Is not of such a nature as to prejudice the position of creditors or shareholders.

(b) That it is just and equitable to grant relief on other grounds.

## Application Procedure

Application is filed in Form CHG-8.
May be filed by the company or any interested person.
The Central Government passes the order on such terms and conditions as it deems just and expedient.

## Rule 12 of the Companies (Registration of Charges) Rules, 2014

The Central Government may, on an application filed in Form CHG-8 in accordance with Section 87:

(a) Direct rectification of the omission or misstatement of any particulars in any filing previously recorded with the Registrar with respect to any:

Charge, or
Modification thereof, or
Memorandum of satisfaction, or
Other entry made under Section 82 or 83.

(b) Direct extension of time for satisfaction of charge, if such filing is not made within 300 days from the date of payment or satisfaction.

## Summary

Default	Available Relief
Failure to file CHG-4 (satisfaction) within 300 days	Section 87 — extension of time
Misstatement in particulars	Section 87 — direction for rectification
Omission in particulars	Section 87 — direction for rectification

> Note: Section 87 does NOT cover delay in registration of creation of charge — that is governed by the timelines in Section 77 itself. Section 87 covers post-registration filings (modifications, satisfaction, etc.).

Worked example

### Example 1

Example: ABC Ltd. fails to file Form CHG-4 within 300 days of satisfaction of charge. It cannot file under Section 82 anymore. It may make an application to the Central Government (Regional Director) in Form CHG-8 under Section 87 for extension of time, on grounds that the omission was accidental.

### Example 2

Example: XYZ Ltd. discovers that the amount of charge entered in the register is incorrectly stated (typographical error in earlier filing). It may file Form CHG-8 to seek rectification.

### Example 3

Example: A creditor of PQR Ltd. discovers that the company has omitted to update the register of charges with respect to satisfaction. The creditor, as an interested person, may file Form CHG-8 to have the register rectified.

⚠️ Common exam mistakes

Believing only the company can apply — any interested person can apply.
Using Section 87 for late registration of creation of charge — that lies within Section 77 (extends only up to 120 days).
Forgetting that the Central Government must be satisfied that the omission is accidental, inadvertent, or non-prejudicial to creditors / shareholders.
Confusing Form CHG-8 (Central Government application) with CHG-4 (satisfaction intimation).

Bare-Act text Section 87 · The Companies Act, 2013 read with Rule 12 of the Companies (Registration of Charges) Rules, 2014 · click to expand

The Central Government on being satisfied that— (a) the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or (b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any such charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83,— was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.

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