[2010] KEHC 3547 (KLR)
The court found that the applicant had provided a satisfactory explanation for the delay in registering the charge, namely, delays at the Lands office, which were beyond the applicant's control. Exercising its discretion under section 102 of the Companies Act, the court held that it was just and equitable to grant...
Source-derived case information.
- Citation
- [2010] KEHC 3547 (KLR)
- Parties
- Applicant: Chemusian Company Limited; Respondent: Mobile World Kenya Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 37 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register a Charge
- Outcome
- application granted
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Company Law Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Chemusian Company Limited
Applicant
Mobile World Kenya Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register a Charge
Legal Issues
- 1 Whether the court should exercise its discretion to extend the time for registration of a company charge under section 102 of the Companies Act.
- 2 Whether the delay in registration was excusable due to circumstances beyond the applicant's control.
Ratio Decidendi
The court found that the applicant had provided a satisfactory explanation for the delay in registering the charge, namely, delays at the Lands office, which were beyond the applicant's control. 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 the registration of the charge. The court emphasized that denying the extension would render the charge void and occasion loss to the parties involved, which would be contrary to the interests of justice.
Court Disposition
application granted
Orders
- Time for registration of the charge dated 21st October 2009 by Chemusian Company Limited over NAIROBI/BLOCK 103/483 is extended by thirty (30) days from the date of the ruling.
- Costs of the application to be in the cause.
Full Case Text
Judgment text and source record
26 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 37 of 2010
IN THE MATTER OF CHEMUSIAN COMPANY LIMITED
AND
IN THE MATTER OF MOBILE WORLD KENYA LIMITED
AND
IN THE MATTER OF AN APPLICATION FOR EXTENSION OF TIME TO REGISTER A CHARGE BY CHEMUSIAN
COMPANY LIMITED
CHEMUSIAN COMPANY LIMITED…………………………APPLICANT
R U L I N G
The application relates to a notice of motion application under Order L Rule 1 of the Civil Procedure Rules, Sections 96 and 102 of the Companies Act, Rules 3 and 8(b) of the Companies (High Court) Rules. It seeks the following orders:
1. THAT this Honourable Court be pleased to certify this application as urgent and the same be heard on priority basis.
2. THAT this Honourable Court be pleased to extend 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 with the Registrar of Companies by a further thirty (30) days as per the powers conferred on it by section 102 of the Companies Act (Cap 486).
3. THAT the costs of this application be in the cause.
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:
Koech for Matheka - Applicant’s Counsel
MUGA APONDI
JUDGE
25TH FEBRUARY 2010