Companies Act Section 83 — Power of Registrar to make entries of satisfaction and release in absence of intimation from company
CHAPTER VI REGISTRATION OF CHARGES
Commercial / Corporate
Summary
Sub-section (1) allows the Registrar to record in the register of charges that a charge has been satisfied or released, even if the company has not informed the Registrar about it. This can be done when the Registrar is given satisfactory evidence that the debt for which the charge was created has been paid or satisfied, either fully or partly, or that part of the company's property or undertaking has been released from the charge or is no longer part of the company's property or undertaking. In such cases, the Registrar may enter a memorandum of satisfaction or release in the register, regardless of the company's failure to provide any intimation.
Sub-section (2) requires the Registrar to inform the affected parties within thirty days of making the entry in the register of charges as mentioned in sub-section (1) of section 81. This ensures that those who are impacted by the entry are notified within a specified time frame.
Official Text
(1) The Registrar may, on evidence being given to his satisfaction with respect to any registered charge,—
(a) that the debt for which the charge was given has been paid or satisfied in whole or in part; or
(b) that part of the property or undertaking charged has been released from the charge or has ceased to form part of the company’s property or undertaking, enter in the register of charges a memorandum of satisfaction in whole or in part, or of the fact that part of the property or undertaking has been released from the charge or has ceased to form part of the company’s property or undertaking, as the case may be, notwithstanding the fact that no intimation has been received by him from the company.
(2) The Registrar shall inform the affected parties within thirty days of making the entry in the register of charges kept under sub-section (1) of section 81.