Rectification by Central Government in Register of Charges [Section 87]
# Rectification by Central Government [Section 87]
## What the Section Does
Section 87 empowers the Central Government (CG) to order rectification of the register of charges maintained by the ROC in certain situations.
## Grounds for Rectification
The CG may direct rectification when there has been:
1. Omission to give intimation to the ROC of payment or satisfaction of a charge within the specified time, OR
2. Omission or mis-statement of particulars in any filing made to the ROC — including filings for:
Creation/modification of charge,
Entry under Section 82 (satisfaction reported by company),
Entry under Section 83 (satisfaction entered by ROC suo motu).
## Pre-condition — CG must be Satisfied
Before passing an order, the CG must be satisfied that the default was:
Accidental or due to inadvertence, OR
Due to sufficient cause, OR
That it did not prejudice the position of creditors or shareholders.
## Application Process
Application is filed by the company or any interested person in Form CHG-8.
CG may direct:
Extension of time for satisfaction of charge (if filing was not made within 300 days), OR
Rectification of the omission or mis-statement of particulars.
Order is passed on terms and conditions as CG deems just and expedient.
## Practical Importance
This is the last resort when statutory timelines have expired (e.g., the 300-day window in Section 82 is over). Without Section 87, the charge record would remain incorrect forever.
Worked example
### Example 1
Example — Belated Satisfaction Beyond 300 Days
K Ltd. repaid its loan on 1st January 2024 but forgot to inform the ROC. The 300-day window under Section 82 expired on 27th October 2024.
K Ltd. (or the charge holder) can apply to the CG in Form CHG-8 under Section 87 for extension of time.
CG must be satisfied that the omission was accidental/inadvertent and not prejudicial to creditors/shareholders.
If satisfied, CG may direct extension so that satisfaction is finally entered in the ROC's register.
### Example 2
Example — Misstatement of Particulars
While filing a charge in CHG-1, M Ltd. inadvertently entered an incorrect loan amount of ₹50 lakh instead of ₹5 crore.
M Ltd. files an application to the CG under Section 87 in Form CHG-8 for rectification.
CG, being satisfied that this was a clerical error not prejudicing anyone, directs the ROC to correct the particulars.
⚠️ Common exam mistakes
Confusing Section 87 (CG's rectification power) with Section 82 (company's regular intimation) — Section 87 kicks in only when statutory timelines have lapsed, or there is an error in records.
Forgetting the CG must be satisfied about the bona fide nature of the default — it is not automatic.
Believing only the company can apply — any interested person (e.g., charge holder, buyer) may apply.
Treating Section 87 as a substitute for original registration under Section 77 — it covers only satisfaction-related delay and omission/mis-statement of particulars, not original creation.
Bare-Act text Section 87 · Companies Act, 2013 · click to expand
Section 87 — 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, the omission or misstatement shall be rectified.