Companies Act Section 87 — Rectification by Central Government in Register of charges
CHAPTER VI REGISTRATION OF CHARGES
Commercial / Corporate
Summary
The Central Government may act when it is satisfied that a problem with a charge filing has occurred. This applies in two situations.
Under clause (a), the situation is where a company failed to inform the Registrar about the payment or satisfaction of a charge within the time required under this Chapter.
Under clause (b), the situation is where there was an omission or misstatement of any particulars in a filing previously made to the Registrar. This could relate to any charge, a modification of a charge, or a memorandum of satisfaction or other entry made under section 82 or section 83.
For the Central Government to act, the omission or misstatement must have been accidental, due to inadvertence, or caused by some other sufficient reason. Alternatively, it must not be of a nature that would prejudice the position of the company's creditors or shareholders.
When either condition is met, the Central Government may, upon the application of the company or any interested person, and on such terms and conditions as it deems just and expedient, direct that the time for giving intimation of payment or satisfaction be extended, or that the omission or misstatement be rectified.
Official Text
The Central Government on being satisfied that—
(a) the omission to give intimate to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or
(b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any charge or modification thereof 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, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.]