Secured borrowings (Satisfaction of charge with ROC)

What is charge satisfaction??

It is a release of the security by the lender to the borrower. It is mandatory to register the satisfaction of charge on Roc.

Who satisfies a charge??

As per Section 77 it is duty of borrower Company to satisfy charge. As per Section 78 if Company fails to file form for registration of charge then, the person in whose favor charge is created will file a form for the satisfaction of charge. The person is entitled to recover from the company the amount of fees.

What happens if a charge is not registered??

Consequences of Non-Registration Although the security is released Omission to registrar particulars of charge is required punishment with a fine. .

Why is it important to register a charge??

The system of registration of charges is important both to those that need to register the charge and to those that need to access information about the charges satisfied by a company. To note, lenders and legal firms may need both to file and to access information on charges.