What are the powers of Registrar to make entries of satisfaction and release of charges in the absence of any intimation from the company. Discuss…

Section 83 of the Companies Act, 2013 empowers the Registrar to make entries with respect to the satisfaction and release of charges even if no intimation has been received by him from the company. This situation would arise where the property subject to a charge is sold to a third-party and neither the company nor the charge-holder has intimated the Registrar regarding satisfaction of the earlier charge. Accordingly, with respect to any registered charge if evidence is shown to the satisfaction of Registrar that the debt secured by charge has been paid or satisfied wholly or in part or that the 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, then he may enter in the register of charges a memorandum of satisfaction that: the debt has been satisfied in whole or in part; orpart of the property or undertaking has been released from the charge or has ceased to form part of the company's property or undertaking. This power can be exercised by the Registrar despite the fact that no intimation has been received by him from the company. According to section 82 (4) , section 82 shall not be deemed to affect the powers of the Registrar to make an entry in the register of charges under section 83 or otherwise than on receipt of an intimation from the company i.e. even if no intimation is received by him from the company. Information to affected parties: According to section 83 (2) , the Registrar shall inform the affected parties within 30 days of making the entry in the register of charges. Issue of Certificate: As per Rule 8 (2) of the Companies (Registration of Charges) Rules, 2014, in case the Registrar enters a memorandum of satisfaction of charge in full, he shall issue a certificate of registration of satisfaction of charge.