Form CHG-8 - Condonation of Delay

The provisions of the

Companies Act states that if a company does not register satisfaction of charges after its full payment or if the satisfaction of the charge is not filed within thirty days from the date of payment of satisfaction, the Registrar would not register the same unless the delay is condoned by the Central Government.

Latest form to be used - Update on 30th April 2019

As per the latest notification from MCA, the form is revised and

can be accessed here. Pages 9 to 11

Registration Charges

Section 77 requires a company to create a charge to register the particulars of charge with

ROC. It further states that the company creating a charge within or outside India, on its property or assets or any kind of its undertakings, whether tangible or otherwise and situated in or outside India has to register the particulars of the charge with the MCA.

Circumstances of Condonation

Condonation of delay arises in the following situations:

A company failing to register charges with Registrar of Companies after creating or modifying charges within 300 days from the date of creation or modification.

For creation and modification of charges, an individual has to file the

CHG-1 form after the expiry of thirty days but not more than 300 days from the date of creation or modification of charge. Any company may file Form CHG-1 form with an additional fee from 30 days to 300 days. On the completion of 300 days, the Company has to file CHG-8 for Condonation of Delay with the Central Government and not with the Registrar as is the case with the former.

A company failing to register charges with the ROC for the Satisfaction of full amount of the charge within 30 days from the date of full payment or satisfaction charge.

For satisfaction of charges, an individual has to file CHG-4 form after expiration of 30 days with an additional fee. On completion of thirty days from the date of satisfaction or full payment of the amount, the Company has to file CHG-8 for Condonation of Delay with the Central Government.

Procedure for Filing of CHG-8

Step 1: The Board conducts a meeting and passes a resolution to make an application with the concerned Regional Director. Step 2: CHG-8 form is obtained and filed physically. Step 3: A petition is prepared and filed with the Regional Director (RD). Step 4: An affidavit verifying petition is prepared by any of the directors of the company. Step 5: A Memorandum of Appearance is prepared to represent the company before the Regional Director.

Forms to be filed with ROC

The below-given forms must be filed with ROC, along with the respective documents.

Form GNL-2 -Supported with Form CHG-8, RD petition, affidavit, Memorandum of Appearance, CHG-4 with payment challan.
Form RD-2 - Supported with Form CHG-8, RD petition, affidavit, Memorandum of Appearance, CHG-4 with payment challan and GNL2 with payment challan.
Form INC-28 - Supported with the filing of RD order in INC-28 form within 30 days.

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Frequently Asked Questions

Common questions about Form CHG-8.

Form CHG-8 is used for seeking condonation of delay from the Central Government in cases where a company fails to register charges or satisfy charges within the prescribed time period. It is required when a company does not register charges with the Registrar of Companies within 300 days of creating or modifying charges, or when it does not register the satisfaction of charges within 30 days of full payment or satisfaction of the charge.

The process of filing Form CHG-8 is initiated by the company's Board conducting a meeting and passing a resolution to make an application with the concerned Regional Director. This is followed by obtaining the CHG-8 form, preparing a petition, an affidavit, and a Memorandum of Appearance, and then filing these documents with the Regional Director.

Along with Form CHG-8, the company needs to file Form GNL-2, Form RD-2, and Form INC-28 with the Registrar of Companies. These forms must be supported with the required documents, such as the RD petition, affidavit, Memorandum of Appearance, CHG-4 form, and payment challans.

Registering charges or satisfying charges within the prescribed time period is important because it is a statutory requirement under the Companies Act. Failure to do so may result in penalties or legal consequences for the company.

A company must register charges with the Registrar of Companies within 300 days from the date of creating or modifying the charges. If the charges are not registered within 30 days, the company can file Form CHG-1 with an additional fee until the 300-day deadline. After 300 days, the company must file Form CHG-8 for condonation of delay with the Central Government.

A company must register the satisfaction of charges with the Registrar of Companies within 30 days from the date of full payment or satisfaction of the charge. If the satisfaction is not registered within 30 days, the company must file Form CHG-8 for condonation of delay with the Central Government.

The Regional Director plays a crucial role in the process of filing Form CHG-8. The company must file a petition with the Regional Director, along with supporting documents such as an affidavit and a Memorandum of Appearance. The Regional Director will review the application and grant or deny the condonation of delay.

Form INC-28 is used to file the order of the Regional Director with the Registrar of Companies within 30 days of receiving the order. This form is a part of the process of filing Form CHG-8 and must be supported with the necessary documents and payment challans.

If a company fails to register charges or satisfy charges within the prescribed time period and does not follow the proper procedure for condonation of delay, it may face penalties or legal consequences. This could include fines, legal actions, or other regulatory actions by the concerned authorities.

No, Form CHG-8 cannot be filed directly with the Registrar of Companies. It must be filed with the concerned Regional Director, along with the required supporting documents. The Regional Director's order must then be filed with the Registrar of Companies using Form INC-28 within 30 days.