1. The Central Government on being satisfied that:—
a. the omission to file with the Registrar the particulars of any charge created by a company or any charge subject to which any property has been acquired by a company or any modification of such charge; or
b. the omission to register any charge within the time required under this Chapter or the omission to give intimation to the Registrar of the payment or the satisfaction of a charge, within the time required under this Chapter; or
c. the omission or mis-statement of any particular with respect to any such charge or modification 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; or
ii. on any other grounds, it is just and equitable to grant relief, it may on the application of the company or any person interested and on such terms and conditions as it may seem to the Central Government just and expedient, direct that the time for the filing of the particulars or for the registration of the charge or for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or mis-statement shall be rectified.
2. Where the Central Government extends the time for the registration of a charge, the order shall not prejudice any rights acquired in respect of the property concerned before the charge is actually registered.
Legal Commentary & Landmark Judgments: Section 87
Section 87 empowers the Central Government (delegated to the Regional Director) to rectify omissions or misstatements in the register of charges and extend the statutory time for filing charge satisfaction or creation where the delay was accidental, inadvertent, or caused by sufficient cause.
When applying for condonation of delay in filing charge satisfaction before the Regional Director in Form CHG-8, plead specific facts establishing inadvertence (e.g., personnel transitions, bank restructuring, or system glitches). Always include an affidavit of no prejudice confirming that no winding up or insolvency petition is pending and no intervening rights of third-party secured creditors will be compromised.