Condonation of Delay for Charges under Companies Act, 2013
When the question for such condonation arises?
The issue for condonation of delay arises only in two circumstances:
When the company has failed to register the charges with the Registrar of Companies within 300 days from the creation or the modification of such charges. The provision is that the company needs to file form CHG-1 within 30 days from the date when such charge is created or modified, failing to which the company has another chance to file the form within 300 days from the date of such creation or modification but with some additional charges. If the company fails to file within such time period also, then there would be not alternative available with the company but to file the condonation of delay with the Central Government.Second alternative when the condonation of delay needs to be filed is when the company fails to file form CHG-4 within 30 days of the satisfaction of the charge. The provision says that the companies require to file form CHG-4 within 30 days from the date of satisfaction of the charge, failing to which the company needs to apply for the condonation of delay. There is no provision such as time limit extended to 300 days in case of satisfaction of charges, you have to directly apply for the condonation to the Central government.
Process for Condonation of Delay:
Whenever the company fails to file the form within stipulated time period, then also he needs to file the form with the additional fees, where in the form, it would be specially written that there is delay in filing and condonatiion is required.The Board of Directors than need to convene a board meeting and give the authorization for filing the petition along with relevant documents as asked by the authority.Petition needs to be filed with the Regional Directory in form RD-2 with the following documents: Form CHG-1/4 True Copy of Board Resolution authorising the condonation MOA & AOA Copy of the Challan for CHG-1/4 Affidavit for the petition Authorising letter for appearing before the Regional Director. Then company needs to file such petition in form GNL-2 with the documents mentioned above as an attachment.After filing the same, Regional Director will call the authorised person of the company for hearing.Once the Regional Director approves the condonation, then the company needs to file such order in INC-28 within 30 days of such order.
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