Section 87 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.
Section 87 lets the Central Government step in when a company has missed the time for telling the Registrar that a charge has been paid or satisfied, or when a filing about a charge contains an omission or misstatement. If the Central Government is satisfied that the lapse was innocent or harmless, it can extend the time or direct that the error be rectified.
Section 87 applies where there was an omission to give intimation of payment or satisfaction of a charge within the time required under Chapter VI, or an omission or misstatement of particulars in an earlier filing on a charge. The Central Government must be satisfied that it was accidental, due to inadvertence or some other sufficient cause, or not of a nature to prejudice creditors or shareholders. On the application of the company or any person interested, it may extend the time or direct rectification, on terms it considers just and expedient.
Where section 87 sits
Section 87 is the last section of Chapter VI (registration of charges). The earlier sections build the filing system: section 77 deals with registration of the creation of a charge, and section 82 deals with satisfaction of charges, with sections 83 and 84 around it. Section 85 sets out the company's own register, and section 86 deals with penalties for contraventions. Section 87 is the relief valve for the intimation and filing errors those sections can produce.
This article reads section 87 as printed in the Companies Act, 2013 as amended up to 29 July 2022 (the consolidated text consulted). In that text the section stands as substituted with effect from 2 November 2018 by Act 22 of 2019. No later amendment was found in the texts consulted; later amendments should be checked on the official text.
For the reader who needs the broader chapter first, see section 77 and registration of charges and sections 78 to 84.
What the section says, element by element
The section is a single sentence with a trigger, a test, an applicant and a power.
The trigger. There are two alternative situations:
- Clause (a): the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter.
- Clause (b): the omission or misstatement of any particulars in any filing previously made to the Registrar with respect to any charge or modification of a charge, or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83.
The test. The Central Government must be "satisfied" that the omission or misstatement "was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company". The test is in the alternative: accidental, inadvertence or other sufficient cause; or no prejudice to creditors or shareholders. Any one limb is enough on the wording.
The applicant. "The company or any person interested". A lender, a holder of the charge or another interested person is therefore not limited to waiting for the company to apply.
The power. The Central Government may, on "such terms and conditions as it deems just and expedient", direct either that the time for giving intimation of payment or satisfaction shall be extended, or, as the case may require, that the omission or misstatement shall be rectified. The two outcomes line up with the two triggers: extension of time for clause (a), rectification for clause (b).
What section 87 does not say
The section prints no time limit for the application and no fee. It also does not name a form or a portal step. If you need those, look at the rules made under the Act and check the current position; this article does not supply them.
It is also worth keeping the scope straight. Section 87 covers the satisfaction side (clause (a)) and omissions or misstatements in filings already made (clause (b)). A delay in registering the creation of a charge sits under section 77, and the section 87 text does not extend to it. The register that the company itself keeps under section 85 is a separate record; see our post on section 85 and the company's register of charges and, for the procedural rules on the register and rectification, rules 10 to 13 of the Registration of Charges Rules, 2014. The satisfaction process is explained in section 82.
If a charge record on the Registrar's side is wrong or an intimation was missed, our team can assess whether this route is open through filing of charge forms.
The section at a glance
| Element | What it says | Who acts | Period as printed |
|---|---|---|---|
| Clause (a) | Omission to intimate payment or satisfaction of a charge within the time required under the Chapter | Company, or person interested, applies | The time required under the Chapter; no period in section 87 |
| Clause (b) | Omission or misstatement of particulars in an earlier filing on a charge, its modification, or a memorandum of satisfaction or other entry under section 82 or 83 | Company, or person interested, applies | No period printed |
| Test | Accidental, inadvertence, other sufficient cause, or not prejudicial to creditors or shareholders | Central Government must be satisfied | Not applicable |
| Power | Extend the time, or direct rectification, on just and expedient terms | Central Government | No period printed |
Worked example
Harbour Textiles Limited repaid a term loan to its lender in full. The accounts team recorded the repayment, but the intimation of satisfaction of the charge was not given to the Registrar within the time required under the Chapter, because the file was held up in the lender's office. Months later, a new lender doing due diligence notices that the Registrar's record still shows the charge as open.
The company secretary, Mr Iyer, reviews the facts. The delay was a slip in routing the paperwork, and the old lender confirms the loan was repaid. Mr Iyer prepares an application to the Central Government, made by the company, explaining that the omission was accidental and that no creditor or shareholder was put in a worse position. The old lender, as a person interested, could also have applied. If the Central Government is satisfied, it may extend the time for giving the intimation, on whatever terms it considers just and expedient, and the intimation can then be made within the extended time.
In a second case, the company finds that a filing on a modification of a different charge printed the wrong particulars. That falls under clause (b); the same application route is open, and the direction sought is rectification of the misstatement.
Common mistakes
- Using section 87 for late creation filings. Delay in registering the creation of a charge is under section 77, not this section.
- Assuming a time limit or fee that the section does not print. Section 87 prints neither; check the rules and current practice.
- Applying without a clear case on the test. The Central Government has to be satisfied of one of the alternatives; the application should say which and give the facts.
- Forgetting that a person interested may apply. Lenders and other interested persons do not have to wait for the company.
- Treating rectification as automatic. The power is discretionary ("may"), and exercised on terms.
- Overlooking penalty exposure. Section 87 relieves the lapse in the record; the consequence for contravention is a matter for section 86 and the post on punishment for charge contraventions. This article states no amount.
Need help with a charge record that is wrong or late?
If a satisfaction was never intimated, or a charge filing has an error that lenders will notice, we can look at the facts, prepare the application and coordinate with the lender. Start with filing of charge forms and we will tell you whether the application route in section 87 fits your case.
Key takeaways
- Section 87 gives the Central Government power to extend time for intimating payment or satisfaction of a charge, and to direct rectification of omissions or misstatements in charge filings.
- The test is in the alternative: accidental, inadvertence or sufficient cause, or no prejudice to creditors or shareholders.
- The company or any person interested may apply.
- Terms are as the Central Government deems just and expedient.
- The section prints no time limit and no fee.
- Late registration of the creation of a charge is a section 77 matter.
Read next
- Section 85: the company's register of charges and inspection
- Section 237: the Central Government's power to order amalgamation in the public interest
- Section 82: satisfaction of charges
- Section 86: punishment for charge contraventions
Disclaimer: Based on the Companies Act, 2013 as amended up to 29 July 2022 (the consolidated text consulted on 4 October 2026). Later amendments to the Act, the rules made under it and the Insolvency and Bankruptcy Code, 2016 should be checked. This article is general information, not legal advice; check the official text before acting.