Rules 5 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.
Once a charge is filed, five short rules take over: how late-filing rules extend to acquired property, what certificate the Registrar issues, where the Registrar's register lives, how a paid-off charge is marked satisfied and how a receiver's appointment is reported. This article states rules 5 to 9 as amended up to G.S.R. 664(E) dated 29 August 2022 per the MCA e-book; later amendments should be checked.
The Registrar issues a certificate in Form CHG-2 on registration of a charge and CHG-3 on registration of a modification, and the certificate is conclusive evidence that the Chapter VI requirements were met. The particulars on the MCA portal are the Registrar's register. Satisfaction is intimated in Form CHG-4 within three hundred days of payment or satisfaction in full, by the company or the charge holder, with the fee. A receiver or manager is reported in Form CHG-6. The Act's side is in section 82.
Rule 5: rule 4 for acquired property and modification
The provisions of rule 4 apply, with the necessary changes, to the registration of a charge on any property acquired subject to a charge and to modification of a charge under section 79. So the Registrar's power to allow late registration on sufficient cause, with the declaration about intervening creditors, is available there too; see our article on rules 1 to 4.
Rule 6: the certificate of registration
| Sub-rule | Rule |
|---|---|
| (1) | Where a charge is registered under section 77(1) or section 78, the Registrar issues a certificate of registration in Form CHG-2. |
| (2) | Where particulars of a modification are registered under section 79, the Registrar issues a certificate of modification in Form CHG-3. |
| (3) | The certificate under sub-rule (1) or (2) is conclusive evidence that the requirements of Chapter VI of the Act and the rules as to registration of the creation or modification of charge have been complied with. |
For a lender, sub-rule (3) is the point: once the certificate is issued, the registration formalities are treated as complied with. For a company, it means the certificate should be kept with the loan file and checked against the instrument filed.
Rule 7: the Registrar's register
Under sub-rule (1), the particulars of charges maintained on the Ministry of Corporate Affairs portal (www.mca.gov.in/MCA21) are deemed to be the register of charges for the purposes of section 81. Under sub-rule (2), the register is open to inspection by any person on payment of fee. The rule does not print the fee; the fee is as provided in the Companies (Registration Offices and Fees) Rules, 2014, and our fee articles (for item II onwards) quote it only as printed there. The portal address is printed in the rule; check that the current portal is the one in use.
Rule 8: satisfaction of charge
Sub-rule (1). A company or charge holder shall, within three hundred days from the date of payment or satisfaction in full of any charge registered under Chapter VI, give intimation of it to the Registrar in Form CHG-4, along with the fee. The words "or charge holder" and the three-hundred-day period come from the amendments of 2018; the e-book's note records the earlier wording as thirty days and a company-only duty, which is not the rule now. Form CHG-4 was also substituted in 2018.
Sub-rule (2). Where the Registrar enters a memorandum of satisfaction of charge in full under section 82 or section 83, he issues a certificate of registration of satisfaction in Form CHG-5.
Three practical points follow from the text:
- The trigger is payment or satisfaction in full, not the date of the last repayment instalment letter or the date on which the bank sends a no-dues letter; use the date on which the charge is paid or satisfied in full.
- Either side may file. A borrower whose lender is slow can file itself, and a lender can file without waiting for the borrower.
- If the three hundred days pass without a filing, rule 12 (dealt with in the next article) lets the Central Government direct an extension of time on an application in Form CHG-8.
If you need to close a charge, our satisfaction of charge (CHG-4) service handles the form and the lender's papers.
Rule 9: receiver or manager
The notice of appointment or cessation of a receiver of, or of a person to manage, the property of a company that is subject to a charge shall be filed with the Registrar in Form CHG-6 along with the fee. The rule covers both ends: the appointment and the cessation. It does not give a time limit in its own text, so read it with the Act.
Example
Pinnacle Auto Components Limited repays a term loan in full on a given date. The bank issues a no-dues letter. Within three hundred days of the full payment, the company (or the bank, as charge holder) files Form CHG-4 with the fee. The Registrar enters a memorandum of satisfaction and issues a Form CHG-5 certificate. Separately, if a receiver had been appointed over the company's factory earlier, the notice of appointment and later of cessation would each have gone to the Registrar in Form CHG-6.
Need help with satisfaction of a charge?
Old charges that stay open on the Registrar's record can hold up fresh borrowing and due diligence. We prepare the CHG-4 papers and check the dates; see our satisfaction of charge service, or our guide on how to satisfy a charge.
Key takeaways
- CHG-2 certifies registration of a charge; CHG-3 certifies a modification; each is conclusive evidence of compliance with Chapter VI.
- The portal particulars are the Registrar's register; any person may inspect it on payment of fee.
- CHG-4 within three hundred days of payment or satisfaction in full, by the company or the charge holder.
- CHG-5 is the certificate of satisfaction.
- CHG-6 reports the appointment or cessation of a receiver or manager.
Read next
- Rules 1–4: CHG-1, CHG-9 and delayed filing
- Rules 10–13: register of charges, rectification and signing of forms
- Section 82: satisfaction and release of charges
- How to satisfy a charge: CHG-4 process
Disclaimer: Based on the Companies Act, 2013 rules named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.