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Microlesson · 5-min read

Satisfaction of Charges (Section 82)

## Satisfaction of Charges – Section 82

### Trigger

When the secured debt has been paid in full (or otherwise satisfied), the charge stands satisfied and this fact must be intimated to the ROC.

### Procedure

1. Company's intimation: Company gives intimation of satisfaction to ROC in Form CHG-4 within 30 days of payment/satisfaction.

2. Extension: The ROC may, on sufficient cause, allow filing up to a maximum of 300 days of satisfaction (with additional fees).

3. Notice to charge-holder: ROC issues a notice to the charge-holder allowing 14 days to show cause why payment/satisfaction should not be recorded as intimated.

4. Certificate (Form CHG-5): If no objection is received within 14 days, ROC records the satisfaction and issues a Memorandum of Satisfaction in Form CHG-5.

5. Charge-holder confirmation route: If the company does not file intimation but the charge-holder confirms satisfaction directly, ROC may record satisfaction and inform the party within 30 days, issuing Form CHG-5.

### Why this matters

Failure to record satisfaction means the charge continues to appear on the company's records and the ROC's register, affecting credit reports and future borrowings even though the underlying loan is repaid.

Worked example

### Example 1

Example 1: R Ltd. repays its bank loan on 10.04.2024. It must intimate ROC of satisfaction in Form CHG-4 by 10.05.2024. ROC then issues a 14-day notice to the bank; the bank does not object. ROC issues Form CHG-5 recording satisfaction.

### Example 2

Example 2: S Ltd. forgets to file CHG-4 within 30 days. It can still apply within 300 days of satisfaction with additional fees; beyond that, application has to be made to the Central Government for condonation.

⚠️ Common exam mistakes

  • Forgetting to file CHG-4 after loan repayment – leaving charge active in ROC records.
  • Confusing satisfaction with modification – modification under Section 79 deals with change in terms; satisfaction under Section 82 deals with discharge.
  • Skipping the 14-day notice step – it is the ROC's procedural duty before issuing CHG-5.
Bare-Act text Section 82 · The Companies Act, 2013 · click to expand
Section 82(1): 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.
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