Filing of Form No. 17 in compliance with section 138 of the Companies Act, 1956 - Simplification of procedure - Companies Law - CIRCULAR NO. 2/96

II CIRCULAR NO. 2/96 [F. NO. 14/1/95-CL.V], DATED 15-4-1996, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS, MINISTRY OF LAW : JUSTICE AND COMPANY AFFAIRS Subject:- Filing of Form No. 17 in compliance with section 138 of the Companies Act, 1956 - Simplification of procedure It has come to the notice that certain Registrars of Companies are insisting on a separate letter from Banks/Financial Institutions in respect of the date of satisfaction of charge even if Form No. 17 had been signed by both the parties, i.e., lender and the borrower. In terms of section 138(2) of the Companies Act, 1956 the Registrar is required to send a notice to the holder of the charge as to why the satisfaction should not be recorded as intimated to the Registrar. If Form No. 17 is signed by both the parties and is filed with Registrar in triplicate, the satisfaction of charge can be registered on the spot without issuing any notice to the holder of the charge under section 138(2) of the Act. As in the case of Registration of charge, one copy of Form No. 17 may be retained by the ROC and two copies duly signed indicating the registration of satisfaction of charge may be returned on the spot. 2. The above simplified procedure may be effected immediately.