A company X Ltd. had registered a floating charge on the entire present & future assets of the company like, RAW MATERIALS, WIP, FINISHED GOODS, Plant & Machinery etc and also created Equitable mortgage of factory building in favour of bank on 20-02-2002 for availing fund based & non fund based facilities like BG, FLC etc. Many times the charge was modified due to availing increase limits. After 2 years Company filed fresh creation documents against the security of Finished goods though first created charges were pending satisfaction, and charge creation forms thereof were approved by MCA.
Balance Sheet of Company did not show any SECURED LOANS FROM 1.4.2006 as most of the facilities were availed for meeting the FLC / BG and there was no overdraft balance too in OCC .
Now on 10th DEC. 2012 Company again approached banker for fresh OCC/FLC facilities and The banker has now sanctioned and created a fresh charge on 25.12.2012 against the same securities / Eq. Mortgage of same property docs in their continuous possession till date as they had not released the security documents. Banker has now issued the NO DUES Letter of current dates in respect of earlier charges created/modified and advised Company to submit FORM 17 for all the previous charges pending satisfaction Till Date.
As per Section 138 of the Companies Act 1956, the form 17 is required to be filed with MCA within 30 days from the date of payment or satisfaction of charge.
QUESTIONS ?
1) WHAT DO YOU MEAN BY DATE OF PAYMENT As per Section 138 of the Companies Act 1956?
2) WHAT DO YOU MEAN BY DATE OF SATISFACTION As per Section 138 of the Companies Act 1956?
3) CAN THE DATE OF PAYMENT BE DIFFERENT FROM DATE OF SATISFACTION ?
4) IF THE DATE OF SATISFACTION MEANS DATE OF PAYMENT WHY THE LEGISLATURE ADDED THE WORD SATISFACTION AFTER THE WORD PAYMENT ?
5) WHAT SHOULD BE THE DATE OF SATISFACTION TO BE MENTIONED IN FORM 17 in aforesaid case? PLEASE ADVISE.
6) WHO CAN SAY/DECLARE THE CHARGE IS SATISFIED ? THE BORROWER or LENDER ?
