Section 82 Companies Act: Company to report satisfaction of charge

Section 82 of Companies Act: Company to report satisfaction of charge

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

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 and the provisions of sub-section (1 ) of section 77 shall, as far as may be, apply to an intimation given under this section.

2. The Registrar shall, on receipt of intimation under sub-section (1 ), 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, and if no cause is shown, by such holder of the charge, the Registrar shall order that a memorandum of satisfaction shall be entered in the register of charges kept by him under section 81 and shall inform the company that he has done so:

Provided that: the notice referred to in this sub-section shall not be required to be sent, in case the intimation to the Registrar in this regard is in the specified form and signed by the holder of charge.

3. If any cause is shown, the Registrar shall record a note to that effect in the register of charges and shall inform the company.

4. Nothing in this section shall be deemed to affect the powers of the Registrar to make an entry in the register of charges under section 83 or otherwise than on receipt of an intimation from the company.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 82

Section 82 governs the statutory reporting of complete payment or satisfaction of any registered charge, requiring filing of Form CHG-4 within thirty days and issuance of certificate of satisfaction.

Framing & Alteration of Charges: Section 82 mandates that a company shall give intimation to the Registrar of the payment or satisfaction in full of any charge registered under Chapter VI within a period of thirty days from the date of such payment or satisfaction in Form CHG-4.
The Registrar: The Registrar may extend the filing window up to three hundred days upon payment of additional fees.

The Registrar sends a show-cause notice to the holder of the charge giving fourteen days to object; if no cause is shown, the Registrar enters satisfaction in the register and issues a Certificate of Satisfaction under Section 82(2).

Key Landmark Precedents:

Official Liquidator v. Ram Swarup (1997) 9 SCC 223: The Supreme Court recognized that statutory registers of charges and their recorded satisfaction provide definitive public notice regarding the unencumbered status of corporate property.
State Bank of India v. Jayanthi (2011) 2 SCC 677: The court affirmed that release of charge and entry of satisfaction terminates the security interest of the lending institution over mortgaged corporate properties.

Legal Commentary:

Failure to record satisfaction under Section 82 leaves corporate assets encumbered on the MCA public database, paralyzing subsequent refinancing, debt syndication, or property conveyancing. In mergers and acquisitions, title due diligence requires verifying certificates of satisfaction for all past term loans and working capital credit facilities.

Section 82: Company to report satisfaction of charge

Section 82 of Companies Act: Company to report satisfaction of charge

Legal Commentary & Landmark Judgments: Section 82