Condone Delay in Charge explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To condone delay in charge filing, apply to the Central Government (Regional Director) in e-Form CHG-8 under Section 87. On a satisfactory hearing, the RD passes an order condoning the delay; the company then files the relevant charge form with that order and files the order in INC-28. Since 2019 this power sits with the RD, not the NCLT.
Overview
Sometimes a charge — most often a satisfaction — is not filed within even the extended timelines, or the register of charges contains an omission or misstatement. In such cases the company cannot simply file the ordinary form; it must first obtain condonation of delay or an order of rectification. e-Form CHG-8 is the application for this relief.
When It Is Required & Legal Basis
Section 87 of the Companies Act, 2013, read with Rule 12 of the Companies (Registration of Charges) Rules, 2014, empowers the Central Government to direct rectification of the register of charges — including condoning delay in filing satisfaction, or correcting an omission or misstatement — where it is satisfied the default was accidental, inadvertent or not prejudicial to creditors. The power, once with the NCLT/Tribunal, now rests with the Central Government (Regional Director) after the 2019 amendment.
Step-by-Step Process
- Identify the default. Confirm the nature — delayed satisfaction, or omission/misstatement in the register of charges.
- Board resolution. Pass a Board resolution authorising the condonation application.
- File CHG-8. File e-Form CHG-8 with the Central Government (Regional Director) with a petition, affidavit and supporting documents.
- Hearing. Attend the hearing before the RD and satisfy the authority that the default was inadvertent and not prejudicial.
- Obtain order. Receive the RD's order condoning the delay/directing rectification.
- File order and charge form. File the order in e-Form INC-28 and then file the underlying CHG-1/CHG-4 to give effect to it.
Forms, Attachments & Fees
| Form / Item | Purpose | Filed with |
|---|---|---|
| CHG-8 | Application for condonation / rectification | Central Government (Regional Director) |
| Petition + affidavit | Explain the delay/error | Attachment to CHG-8 |
| RD order | Condonation / rectification order | Issued by RD |
| INC-28 | Intimate the order to Registrar | Filed with ROC |
| CHG-1 / CHG-4 | Give effect to the charge/satisfaction | Filed after order |
Timeline & Due Dates
There is no fixed statutory deadline to apply for condonation — it is filed once the default is discovered. Processing depends on the RD's cause list and hearings, so allow several weeks to a few months. After the order, INC-28 and the charge form should be filed promptly within the time the order allows.
Penalty for Delay / Non-compliance
The RD may impose costs or conditions while condoning the delay. Independent of condonation, the underlying default can attract penalty on the company and officers under Section 86. Failing to regularise an open charge continues to expose the company to due-diligence red flags and enforceability risks.
Practical Tips
- Remember the power now sits with the Regional Director (Central Government), not the NCLT, for register-of-charges rectification since 2019.
- Draft a clear affidavit showing the default was accidental/inadvertent and not prejudicial to creditors.
- After the order, file INC-28 first, then the CHG-1/CHG-4 within the permitted time.
- Take professional advice where the delay concerns creation/modification beyond 120 days — relief there is limited.