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The Companies Act, 1956

Title : The Companies Act, 1956

Year : 1956



Every company shall cause a copy of every instrument creating any charge requiring registration under this Part to be kept at the registered office of the company:-

Provided that, in the case of a series of uniform debentures, a copy of one debenture of the series shall be sufficient.



(1) If any person obtains an order for the appointment of a receiver of, or of a person to manage, the property of a company, or if any person appoints such receiver or person under any powers contained in any instrument, he shall, within1*[thirty] days from the date of the passing of the order or of the making of the appointment under the said powers, give notice of the fact to the Registrar; and the Registrar shall, on payment of the prescribed fee, enter, the fact in the Register of charges.

(2) Where any person so appointed under the powers contained in any instrument ceases to act as such, he shall, on so deceasing, give to the Registrar notice to that effect; and the Registrar shall enter the notice in the Register of charges.

(3) If any person makes default in complying with the requirements of sub-section (1) or (2), he shall be punishable with fine which may extend to2*[five hundred rupees] for every day during which the default continues.

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1. Substituted by Act 31 of 1965, Section 62 and Schedule, for "fifteen" (w.e.f. 15-10-1965).

2. Substituted by Act 53 of 2000, Section 52, for "fifty rupees" (w.e.f. 13-12-2000).

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(1) The company shall give intimation to the Registrar of the payment or satisfaction,1[in full], of any charge relating to the company and requiring registration under this Part, within2*[thirty] days from the date of such payment or satisfaction.

(2) The Registrar shall, on receipt of such intimation, cause a notice to be sent to the holder of the charge calling upon him to show cause within a time (not exceeding fourteen days) specified in such notice, why payment or satisfaction should not be recorded as intimated to the Registrar.

(3) If no cause is shown, the Registrar shall order that a memorandum of satisfaction3[***]shall be entered in the register of charges.

(4) If cause is shown, the Registrar shall record a note to that effect in the register, and shall inform the company that he has done so.

(5) Nothing in this section shall be deemed to affect the power of the Registrar to make an entry in the register of charges under section 139 otherwise than on receipt of an intimation from the company.

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1. Substituted by Act 65 of 1960, Section 30, for "in whole or in part" (w.e.f. 28-12-1960).

2. Substituted by Act 31 of 1965, Section 62 and Schedule, for "twenty-one" (w.e.f. 15-10-1965).

3. The words "in whole or in part, as the case may be," omitted by Act 65 of 1960, Section 30 (w.e.f. 28-12-1960).

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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.



Where the Registrar enters a memorandum of satisfaction in whole or in part, in pursuance of section 138 or 139, he shall furnish the company with a copy of the memorandum.



(1) The Central Government, on being satisfied-

(a) That the omission to file with the Registrar the particulars of any charge created by a company or of any charge subject to which any property has been acquired by the company or of any modification of any such charge or of any issue of debentures of a series, or that the omission to register any charge within the time required by this Part or that the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required by this Part, or that the omission or m is statement of any particular with respect to any such charge, modification or issue of debentures of a series or with respect to any memorandum of satisfaction or other entry made in pursuance of section 138 or section 139, was accidental or due to inadvertence or some other sufficient cause or is not of a nature to prejudice the position of creditors or shareholders of the company; or

(b) That on other grounds, it is just and equitable to grant relief, may on the application of the company or any person interested and on such terms and conditions as it may seem to the Central Government just and expedient, direct that the time for the filing of the particulars or for the registration of the charge or for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or mis-statement shall be rectified.

(2) The Central Government may make such order as to the costs of an application under sub-section (1) as it thinks fit.

(3) Where the Central Government extends the time for the registration of a charge, the order shall not prejudice any rights acquired in respect of the property concerned before the charge is actually registered.]

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1. Substituted by the Companies (Second Amendment) Act, 2002 (Act 11 of 2003),w.e.f. 12.08.2012 Section 20, for Section 141 (see Annexe).
 
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(1) If default is made in filing with the Registrar for registration the particulars -

(a) Of any charge created by the company;

(b) Of the payment or satisfaction1[***] of a debt in respect of which a charge has been registered under this Part; or

(c) Of the issues of debentures of a series; requiring registration with the Registrar under the provisions of this Part, then, unless the registration has been effected on the application of some other person, the company, and every officer of the company or other person who is in default, shall be punishable with fine which may extend to2*[five thousand rupees] for every day during which the default continues.

(2) Subject as aforesaid, if any company makes default in complying with any of the other requirements of this Act as to the registration with the Registrar of any charge created by the company or of any fact connected therewith, the company, and every officer of the company who is in default, shall, without prejudice to any other liability, be punishable with fine which may extend to3*[ten thousand rupees].

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1. The words "in whole or in part," omitted by Act 65 of 1960, Section 32 (w.e.f. 28-12-1960).

2. Substituted by Act 53 of 2000, Section 53, for "five hundred rupees"  (w.e.f. 13-12-2000).

3. Substituted by Act 53 of 2000, Section 53, for "one thousand rupees"  (w.e.f. 13-12-2000).

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(1) Every company shall keep at its registered office a register of charges and enter therein all charges specifically affecting property of the company and all floating charges on the undertaking or on any property of the company, giving in each case-

(i) A short description of the property charged;

(ii) The amount of the charge; and

(iii) Except in the case of securities to bearer, the names of the persons entitled to the charge.

(2) If any officer of the company knowingly omits, or willfully authorises or permits the omission of, any entry required to be made in pursuance of sub-section (1), he shall be punishable with fine which may extend to1*[five hundred rupees].

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1. Substituted by Act 53 of 2000, Section 54, for "five hundred rupees"  (w.e.f. 13-12-2000).

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(1) The copies of instruments creating charges kept in pursuance of section 136, and the register of charges kept in pursuance of section 143, shall be open during business hours (but subject to such reasonable restrictions as the company in general meeting may impose, so that not less than two hours in each day are allowed for inspection) to the inspection of any creditor or member of the company without fee, at the registered office of the company.

(2) The register of charges kept in pursuance of section 143 shall also be open, during business hours but, subject to the reasonable restrictions aforesaid, to the inspection of any other person on payment of a fee of1*[such sum as may be prescribed] for each inspection, at the registered office of the company.

(3) If inspection of the said copies or register is refused the company, and every officer of the company who is in default, shall be punishable with fine which may extend to2*[five hundred rupees] and with a further fine which may extend to3*[two hundred rupees] for every day during which the refusal continues.

(4) The4*[Central Government] may also by order compel an immediate inspection of the said copies or register.

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1. Substituted by Act 31 of 1988, Section 67, for "one rupee" w.e.f. 15-7-1988.

2. Substituted by Act 53 of 2000, Section 55, for "fifty rupees"  (w.e.f. 13-12-2000).

3. Substituted by Act 53 of 2000, Section 55, for "twenty rupees"  (w.e.f. 13-12-2000).

4. Substituted by Act 31 of 1988, Section 67, for "Court" (w.e.f. 31-5-1991) and again Substituted by Act 11 of 2003, Section 21, for "Company Law Board".

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In respect of1*[any charge created before, and remaining unsatisfied at, the commencement of this Act,] which, if this Act had been in force at the relevant time, would have had to be registered by the company in pursuance of this Part but which did not require registration under the Indian Companies Act, 1913 (7 of 1913) and in respect of all matters-relating to such charge, the provisions of this Part shall apply and have effect in all respects, as if the date of commencement of this Act had been substituted therein for the date of creation of the charge, or the date of completion of the acquisition of the property subject to the charge, as the case may be. Nothing contained in this section shall be deemed to affect the relative priorities as they existed immediately before the commencement of this Act, as between charges on the same property.

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1. Substituted by Act 65 of 1960, Section 33, for "any charge created before the commencement of this Act" (w.e.f. 28-12-1960).

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Last updated on August, 2016

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