Charges - Satisfaction of ‑ Time within which notice to holder should be issued - Companies Law - No. 2/4/60‑PR,

Circular : No. 2/4/60 ‑ PR, dated 15 ‑ 2 ‑ 1960. Subject:- Charges - Satisfaction of ‑ Time within which notice to holder should be issued Under the provisions of sub‑sections (1) and (2) of section 138, the Registrar on receipt of an intimation of satisfaction of a charge from a company is required to send a notice to the holder of the charge calling upon him to show cause within a time (not exceeding fourteen days) specified in such notice as to why the payment or satisfaction should not be recorded as intimated to the Registrar. Although time limit has been laid down in sub‑section (1) for a company to report satisfaction to the Registrar and, in sub‑section (2), for the holder of the charge to send his reply to the Registrar, no such limit is laid down for the Registrar to send his notice to the holder of the charge. In some cases, unusual delay takes place in issuing the notice of the intimation from the company relating to the satisfaction of charge, and consequently in recording satisfaction or payment of charges. It has, therefore, been decided that the notice under sub‑section (2) should be issued by the Registrar as early as possible and in any case within a week after the receipt of an intimation of satisfaction of charge from the company so that the unnecessary delay in registering the memorandum of satisfaction of a charge is avoided.