Satisfaction of charge of a company
G Shrikant
(Querist) 30 November 2012
This query is : Resolved
One company 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 fresh/increase limits. After 2 years Company filed fresh creation documents against the security of Finished goods though first created charge was pending satisfaction, which forms were duly approved by MCA.
Balance Sheet of Company did not show any SECURED LOANS FROM 31.03.2006 as most of the facilities were availed for meeting the FLC and paid from the internal resources by the company. There was no overdraft balance too in OCC from 31.03.2006 .
Now on 10th Nov. 2012 Company again approached banker for fresh OCC/FLC facilities and The banker has now sanctioned fresh OCC / FLC and created a fresh charge on 25.11.2012 against the same securities ie WIP, RM, Finished goods PM etc & Eq. Mortgage of same property docs, in their continuous possession till date as they had not released the security documents.
Banker has also now issued the NO DUES Letter of current dates in respect of all earlier charges created/modified during 2002 to 2005 and advised Company to submit FORM 17 for all the charges for which satisfaction forms were not filed till creation of new charge this month .
WHAT SHOULD BE THE DATE OF SATISFACTION TO BE MENTIONED IN FORM 17 ? PLEASE ADVISE.
Raj Kumar Makkad
(Expert) 01 December 2012
This date must be prior to 10th Nov 2012 so that the same properties may be justified to be as securities for fresh OCC/FLC facilities.
