Registration, Modification & Satisfaction of Charges
Section 77 to 87 Companies Act 2013 | Bank Loans & Debentures | Form CHG-1 & Form CHG-4
Register bank loan securities, hypothecations, and mortgages on the MCA portal within statutory timelines with Practicing Company Secretaries. We assist companies, banks, NBFCs, and financial institutions in filing, modifying, and satisfying charges over corporate assets under Sections 77 and 82 of the Companies Act 2013.
Under Section 77 of the Companies Act 2013, every company creating or modifying a charge on its property, assets, or undertaking (whether tangible or intangible, within or outside India) must register the particulars with the ROC in Form CHG-1 within 30 days. An unregistered charge is legally void against liquidators and creditors.
- Statutory charge creation and modification filing in Form CHG-1 within 30 days
- Full satisfaction of charges in Form CHG-4 upon complete bank loan repayment
- Protection against lender default claims and liquidator asset invalidation
- Condonation of Delay petitions before Regional Director (RD) in Form CHG-8 for delayed filings
Why Choose Creation, Modification & Satisfaction of Charges (MCA)?
Failing to register a bank loan charge renders the bank's security void in corporate insolvency (IBC), blocks further credit lines, and attracts severe compounding penalties on the company and directors.
Mandatory Bank Loan Disbursement Prerequisite
Banks and financial institutions require the ROC Charge Registration Certificate (Form CHG-2) before releasing loan funds.
Legal Protection in Corporate Insolvency (IBC)
Registration records the security interest and can affect creditor rights, subject to the Companies Act, the Insolvency and Bankruptcy Code and the transaction facts.
Seamless Charge Modification (Form CHG-1)
Update changes in loan limits, interest rates, consortia lenders, or substituted collateral properties with ROC.
Clean Title & Charge Satisfaction (Form CHG-4)
Obtain ROC Certificate of Satisfaction (Form CHG-5) upon loan closure, clearing MCA public asset records.
Expert Regional Director Condonation (CHG-8)
We handle legal petitions before the Regional Director to regularize charges delayed beyond statutory periods.
Turnkey CS Legal Execution
Our Company Secretaries draft sanction letter extracts, board resolutions, and file MCA V3 e-forms with zero errors.
Comprehensive Creation, Modification & Satisfaction of Charges (MCA) Offerings
Our secretarial advisory covers charge creation, modification, satisfaction, and RD condonation.
1. Creation of Charge (Form CHG-1 / CHG-9)
- Filing e-Form CHG-1 (for general assets) or e-Form CHG-9 (for debentures) within 30 days of loan agreement
- Attaching certified copies of Sanction Letter, Loan Agreement, Deed of Hypothecation, and Mortgage Deed
- Board Resolution authorizing borrowing and creation of security under Section 179/180
- Securing ROC Certificate of Registration of Charge in Form CHG-2
2. Modification of Charge (Form CHG-1)
- Filing Form CHG-1 within 30 days of executing loan modification deed or enhancement sanction
- Modifying loan limits, interest rates, repayment tenure, or adding new collateral assets
- Pari-passu charge creation for multi-bank lending consortia
- Securing ROC Certificate of Modification of Charge in Form CHG-3
3. Satisfaction of Charge (Form CHG-4)
- Filing e-Form CHG-4 within 30 days of receiving Bank No Dues Certificate (NDC) / Loan Closure Letter
- Attaching Bank NDC, board resolution, and property release confirmation
- ROC serves statutory 14-day notice to lender; automated approval if no objection received
- Securing ROC Certificate of Satisfaction of Charge in Form CHG-5
4. Condonation of Delay (Form CHG-8 Petition)
- Filing legal petition before Regional Director (RD) under Section 87 for charges delayed >120 days
- Drafting affidavit, memorandum of appearance, and appearing before the Regional Director
- Obtaining RD condonation order and filing Form INC-28 with ROC to register the delayed charge
- Updating the Register of Charges maintained at the company's registered office
Step-by-Step Creation, Modification & Satisfaction of Charges (MCA) Execution Process
Step 1: Loan & Security Deed Review
Analyzing Sanction Letter, Loan Agreement, Hypothecation Deed, or Mortgage Deed for charge particulars.
Step 2: Board Resolution & Form Compilation
Drafting Board Resolution approving charge creation and preparing Form CHG-1 / CHG-4 with digital signatures.
Step 3: Filing on MCA V3 Portal
Filing e-Form CHG-1 or CHG-4 on MCA portal with bank authorization and PCS pre-certification within 30 days.
Step 4: ROC Verification & Certificate Grant
Registrar of Companies issues Certificate of Registration (CHG-2), Modification (CHG-3), or Satisfaction (CHG-5).
Step 5: Updating Statutory Register of Charges
Entering charge details in statutory Register of Charges in Form CHG-7 at company registered office.
Documents Required for Creation, Modification & Satisfaction of Charges (MCA)
Loan & Security Documents
- Bank Sanction Letter: Latest loan sanction letter signed and accepted by the company
- Loan / Credit Agreement: Executed Master Credit Facility Agreement between company and lender
- Deed of Hypothecation / Mortgage: Registered deed of hypothecation, mortgage deed, or pledge agreement
- No Dues Certificate (NDC): Bank Loan Closure Letter and NOC (for charge satisfaction)
Corporate Secretarial Records
- Board Resolution: Certified true copy of Board Resolution approving borrowing and charge creation
- Shareholder Resolution (180(1)(c)): Special Resolution under Section 180(1)(c) if borrowings exceed paid-up capital & free reserves
- Register of Charges (CHG-7): Updated statutory Register of Charges maintained by the company
- DSC of Director & Bank: Valid Class-3 DSC of authorized director, bank authorized officer, and certifying PCS
Why Choose Lawful Journey?
Senior CS & Advocate Leadership
Direct supervision by qualified Company Secretaries and corporate advocates with 15+ years of specialized experience in statutory compliance, certification, and corporate law.
Pre-Filing Quality Review
Structured document reviews help identify missing information, inconsistencies, and filing risks before submission to the relevant authority.
Fast-Track Turnaround
Streamlined internal workflows, digital portal filing acceleration, and dedicated case managers keeping you updated at every single milestone.
End-to-End Confidentiality
Bank-grade data confidentiality and legally binding NDAs protecting your business records, proprietary technical data, and corporate filings.
Transparent Fixed Pricing
Clear, all-inclusive professional fees without hidden charges or surprise surcharges. Complete clarity before filing begins.
Post-Approval Support
Ongoing compliance tracking, annual renewal reminders, statutory register updates, and dedicated helpline for all future legal requirements.
Frequently Asked Questions
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Under Section 77, a charge must be filed within 30 days of creation. The ROC can allow delayed filing up to 60 days (with additional fees) and up to 120 days (with ad-valorem fees). Filings beyond 120 days require Regional Director condonation in Form CHG-8.
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Under Section 77(3), an unregistered charge is completely void against the liquidator and other creditors of the company in insolvency proceedings, treating the bank as an unsecured creditor.
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Yes. Under Section 78, if a company fails to register the charge within 30 days, the person in whose favor the charge is created (the bank/lender) can apply to the ROC for registration and recover the filing fees from the company.
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Form CHG-1 is used for Creation and Modification of charges on company assets. Form CHG-4 is used for the Satisfaction (complete repayment and closure) of charges.
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Yes. Under Section 85, every company must maintain a permanent Register of Charges in Form CHG-7 at its registered office, along with a copy of every instrument creating the charge.
Ready to Get Started with Creation, Modification & Satisfaction of Charges (MCA)?
Schedule a confidential consultation with our Senior Company Secretaries and Legal Advisors. We provide strategic guidance, document preparation, and fast-track execution.
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