Chapter VI - Registration of Charges
Section 87
Section 87: rectification by Central Government in register of charges
If an omission to intimate satisfaction on time, or an omission or misstatement in a charge filing, was accidental, inadvertent or otherwise excusable, the Central Government may extend time or direct rectification.
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Need advice on Section 87?
This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The Central Government on being satisfied that— (a) the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or (b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83, 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, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.
Introduction
Section 87 provides a remedial route for charge-filing errors. It was substituted by the Companies (Amendment) Act, 2019, section 13, deemed in force from 2 November 2018.
The current section addresses satisfaction intimations and filings already made; it no longer deals with delayed registration of charge creation or modification, which the amended section 77 provisos handle with extended periods and additional fees.
Key takeaways
Two situations
Late intimation of payment or satisfaction, and omissions or misstatements in earlier filings about charges, modifications or satisfaction entries.
Test
Accident, inadvertence or other sufficient cause, or no prejudice to creditors or shareholders.
Relief
Extension of time for intimation, or rectification of the omission or misstatement, on just terms.
Is the error covered?
Clause (a) covers failure to intimate payment or satisfaction of a charge within the Chapter VI time. Clause (b) covers omissions or misstatements of particulars in filings already made about a charge, its modification, or a memorandum of satisfaction or other entry under section 82 or 83.
Show sufficient cause
The Central Government must be satisfied that the omission or misstatement was accidental, due to inadvertence or other sufficient cause, or is not of a nature to prejudice creditors or shareholders. Support the application with a chronology and documents.
Application and order
The company or any interested person may apply. The Central Government may direct that time be extended or that the omission or misstatement be rectified, on terms and conditions it considers just and expedient. Check the Companies (Registration of Charges) Rules, 2014 for any prescribed application procedure and confirm the authority to which the Central Government’s power currently stands delegated.
Practical preparation
Classify the error under clause (a) or (b); collect the original filing and correct particulars; explain the cause; assess prejudice to creditors and shareholders; apply and comply with any conditions in the order.
Practical checklist
Do
- Correct charge-filing errors promptly once discovered.
- Explain the cause with documents, not just a statement.
Avoid
- Do not use section 87 for late registration of charge creation; check the section 77 provisos instead.
Illustrative example
Hypothetical: wrong charge amount filed
A company finds its earlier filing recorded the secured amount incorrectly because of a typing error.
Classify
This is a misstatement in a previous filing under clause (b).
Apply
The company applies with the instrument showing the correct amount and an explanation of the inadvertence.
Order
If satisfied, the Central Government directs rectification on terms it considers just.
Outcome
- The register is corrected through the statutory route rather than an informal refiling.
Glossary
- Rectification
- Correction of an omission or misstatement in the charge record.
- Condonation
- Here, an extension of the time for intimating payment or satisfaction.
Frequently asked questions
Who can apply under section 87?
The company or any person interested.
Does section 87 cover delay in registering a new charge?
Not in its current form. The substituted section covers late satisfaction intimations and errors in earlier filings; delayed creation filings are dealt with under the section 77 provisos.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026