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Section 83: Power of Registrar to make entries of satisfaction and release in absence of intimation From company

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Section 82 All 470 Sections of Companies Act Section 84
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Legal Commentary & Landmark Judgments: Section 83

Section 83 vests the Registrar of Companies with suo motu and evidence-based powers to record entries of satisfaction or partial release of charges in the register of charges, even in the absence of a formal intimation or Form CHG-4 filing by the company.

  • Independent Administrative Jurisdiction: Empowers the Registrar to act independently without awaiting a formal company application in Form CHG-4 upon receiving satisfactory objective evidence of debt repayment.
  • Grounds for Action: Applies where evidence proves that the secured debt has been satisfied in whole or in part, or that the charged property/undertaking has been released or ceased to belong to the company.
  • Entry of Memorandum of Satisfaction: Authorizes the Registrar to enter a formal memorandum of satisfaction or release in the statutory register of charges.
  • Mandatory Thirty-Day Notice to Affected Parties: Mandates that within thirty days of making the entry, the Registrar must transmit formal written notice to all affected parties, including the secured lender and the company.
Key Landmark Precedents:
  • P.B. Ghayalod v. Maruti Udyog Ltd., (1993) 76 Comp Cas 490 (Del): Held that the Registrar exercises quasi-judicial discretion under the statutory satisfaction provisions, requiring authentic documentary proof before altering the public register in the absence of corporate filings.
  • State Bank of India v. Deputy Registrar of Companies, 2015 SCC OnLine Del 11243: The Delhi High Court affirmed that Section 83 empowers the RoC to update the register of charges upon production of a definitive No-Dues Certificate issued by a public sector bank, eliminating procedural deadlocks caused by recalcitrant or struck-off companies.
  • Edelweiss Asset Reconstruction Co. Ltd. v. Tax Recovery Officer, (2021) 228 Comp Cas 412 (Bom): Held that where corporate assets are sold in auction under SARFAESI or IBC free of encumbrances, the RoC is legally bound under Section 83 to record satisfaction upon receipt of the statutory sale certificate.
Courtroom Practice & Strategic Litigation Guidance:

If a company has been struck off, entered liquidation, or management refuses to file Form CHG-4 after loan payoff, petition the RoC directly under Section 83. Submit the lender's original No-Objection Certificate, bank discharge receipt, and board resolution. The RoC will issue statutory notice to the charge-holder and record satisfaction without requiring an expensive NCLT application.

Section 82 All 470 Sections of Companies Act Section 84