[2010] KEHC 3297 (KLR)
The court found that the applicant had demonstrated sufficient cause for the delay in registering the charge, as the delay was due to circumstances at the Lands office and not the applicant's fault. Exercising its discretion under section 102 of the Companies Act, the court held that it was just and equitable to...
Source-derived case information.
- Citation
- [2010] KEHC 3297 (KLR)
- Parties
- Applicant: Alfa Motors Limited; Respondent: Bank of Baroda Kenya Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 87 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
- Outcome
- application allowed
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Court Discretion, Debenture Registration
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Alfa Motors Limited
Applicant
Bank of Baroda Kenya Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
Legal Issues
- 1 Whether the court should extend time for registration of a charge and debenture after expiry of the statutory period.
- 2 Whether the omission to register within time due to delay at the Lands office constitutes sufficient cause for extension.
Ratio Decidendi
The court found that the applicant had demonstrated sufficient cause for the delay in registering the charge, as the delay was due to circumstances at the Lands office and not the applicant's fault. Exercising its discretion under section 102 of the Companies Act, the court held that it was just and equitable to grant an extension of thirty days for registration of the charge and debenture. The court emphasized that denying the extension would render the charge void and cause loss to the parties, which would be contrary to the interests of justice.
Court Disposition
application allowed
Orders
- Time for registration of the charge and debenture documents dated 23rd November 2009 in respect of L.R. No. 209/4410 is extended by thirty (30) days from the date of this ruling.
- There shall be no order as to costs.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 87 of 2010
IN THE MATTER OF: ALFA MOTORS LIMITED
AND
IN THE MATTER OF: BANK OF BARODA KENYA LIMITED
AND
IN THE MATTER OF: THE COMPANIES ACT
AND
IN THE MATTER OF: EXTENSION OF TIME FOR REGISTRATION OF A CHARGE AND
R U L I N G
The application relates to a notice of motion application under Rules 3 and 8(b) of the Companies (High Court) Rules, Section 102 of the Companies Act Cap 486, Section 3A of the Civil Procedure Act, and Order L rules 1 and 3 of the Civil Procedure Rules. It seeks the following orders:
1. The time for registration of the charge and debenture documents dated 23rd November 2009 in respect of L.R. No. 209/4410 be extended by 30 days.
2. There be no order as to costs.
During the hearing of the application the applicant’s counsel Mr. Matheka submitted that they were relying on the supporting of Dorothy Rono. They were applying that the court grants prayer No. 2 since the forty two (42) days for the registration of the charge with the Registrar of Companies has expired. Further to the above he also submitted that the omission to register the charge within the required time was due to the delay in the Lands office. Besides the above, he also submitted that unless the application is allowed, the subject charge will be rendered void and thereby occasion loss to the parties involved.
After carefully considering the application, I hereby grant prayer No. 2. Specifically, I hereby direct that the time within which to register the charge dated 21st October 2009 by Chemusian Company Limited over NAIROBI/BLOCK 103/483 in the name of Chemusian Company Limited by the Registrar of Companies be extended for a period of thirty (30) days from today. The above has been made in conformity with my powers and discretion under section 102 of the Companies Act, Cap 486, Laws of Kenya.
Those are the orders of this court.
MUGA APONDI
JUDGE
Ruling read signed and delivered in open court in the presence of:…………………………………………Applicant’s Counsel
MUGA APONDI
JUDGE
25TH FEBRUARY 2010