Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Satisfaction of Charges (Section 82)

# Satisfaction of Charges (Section 82)

## What is Satisfaction of Charge?

When the debt or obligation secured by a charge is fully paid or otherwise discharged, the charge ceases to exist. This event must be intimated to the Registrar so that the register reflects the current position.

## Procedure for Intimation

AspectDetails
FormCHG-4
Time (general)Within 30 days of payment / satisfaction
Time (specified IFSC public company)Within 300 days of payment / satisfaction
Extended time on applicationRegistrar may allow intimation up to 300 days on payment of additional fees

## Process After Intimation

1. On receipt of intimation, the Registrar shall send a notice to the holder of the charge calling upon him to show cause within 14 days as to why payment or satisfaction in full should not be recorded.

2. Outcome depends on the charge-holder's response:

If charge-holder does NOT show causeIf charge-holder SHOWS cause
Registrar shall order entering of a memorandum of satisfaction in the register of charges and inform the company.Registrar shall record a note to that effect in the register of charges and inform the company.

3. No 14-day notice required: If the intimation in Form CHG-4 is signed by the charge-holder himself, the Registrar need not send notice to the charge-holder.

## Certificate of Satisfaction

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.

## Summary Flow

```

Payment / Satisfaction

Company files Form CHG-4 within 30 days

(or up to 300 days with additional fees / for IFSC public company)

Registrar issues 14-day notice to charge-holder

(unless CHG-4 is signed by charge-holder)

No cause shown → Memorandum of Satisfaction entered

Certificate in Form CHG-5 issued

```

Worked example

### Example 1

Example: ABC Ltd. fully repays a term loan to PNB on 1st March. ABC Ltd. files Form CHG-4 on 20th March (within 30 days). The Registrar sends notice to PNB to show cause within 14 days. PNB raises no objection. The Registrar records a memorandum of satisfaction and issues Form CHG-5.

### Example 2

Example: ABC Ltd. fully repays a loan on 1st March but forgets to file Form CHG-4. On 15th May (75 days later), it applies to the Registrar. The Registrar may allow filing within a total of 300 days on payment of additional fees.

### Example 3

Example: XYZ Ltd. repays a loan and obtains Form CHG-4 signed by the charge-holder (the bank). When this is filed, the Registrar need not issue a 14-day show-cause notice and may directly enter the memorandum.

⚠️ Common exam mistakes

  • Confusing satisfaction (Section 82) with creation (Section 77) — different forms and deadlines.
  • Forgetting the 300-day extended window with additional fees.
  • Skipping the 14-day show-cause notice when the CHG-4 is not signed by the charge-holder.
  • Believing the certificate of satisfaction is in CHG-4 — it is CHG-5.
Bare-Act text Section 82 · The Companies Act, 2013 read with Rule 8 of the Companies (Registration of Charges) Rules, 2014 · click to expand
A company shall give intimation to the Registrar in the prescribed form, of the payment or satisfaction in full of any charge registered under this Chapter within a period of thirty days from the date of such payment or satisfaction. The Registrar shall, on receipt of intimation, cause a notice to be sent to the holder of the charge calling upon him to show cause within such time not exceeding fourteen days, as may be specified in such notice, as to why payment or satisfaction in full should not be recorded as intimated to the Registrar.
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic