[2010] KEHC 756 (KLR)
The court found that the delay in registering the charge was occasioned by circumstances beyond the applicant's control, specifically the misplacement of the file at the Lands office and the late issuance of the necessary consent. The applicant demonstrated willingness to comply with the statutory requirements and...
Source-derived case information.
- Citation
- [2010] KEHC 756 (KLR)
- Parties
- Applicant: Equity Bank Limited; Respondent: A-Plus Motors Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 328 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge
- Outcome
- application granted
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Companies Act Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Equity Bank Limited
Applicant
A-Plus Motors Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge
Legal Issues
- 1 Whether the court should extend the period for registering a charge under section 102 of the Companies Act.
- 2 Whether the delay in registration was excusable and not within the applicant's control.
Ratio Decidendi
The court found that the delay in registering the charge was occasioned by circumstances beyond the applicant's control, specifically the misplacement of the file at the Lands office and the late issuance of the necessary consent. The applicant demonstrated willingness to comply with the statutory requirements and acted promptly upon obtaining the consent. The court exercised its discretion under section 102 of the Companies Act and granted the extension sought, finding that it was just and expedient to do so in the circumstances. The respondent did not oppose the application, and there was no evidence of prejudice to any party by granting the extension.
Court Disposition
application granted
Orders
- The period for registering the charge dated 13th November, 2009 between A-Plus Motors Limited and Equity Bank Limited over Title No. Nairobi/Block 119/384 is extended and the charge shall be filed with the Registrar of Companies within 45 days from the date of this order.
- Costs 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 & TAX DIVISION)
MISC. APPLICATION NO. 328 OF 2010
IN THE MATTER OF EQUITY BANK LIMITED
IN THE MATTER OF AN APPLICATION FOR AN ORDER TO REGISTER A CHARGE/MORTGAGE OUT OF TIME
UNDER THE PROVISIONS OF SECTION 96 AND 102 OF THE COMPANIES ACT (CAP 486) LAWS OF KENYA
AND
IN THE MATTER OF:
EQUITY BANK LIMITED.........................................................................................................APPLICANT
VERSUS
A-PLUS MOTORS LIMITED..............................................................................................RESPONDENT
R U L I N G
This ruling relates to a notice of motion application brought under section 102 of the Companies Act and Rules, 3, 4 and 8(b) of the Companies (High Court) Rules and Section 3A of the Civil Procedure Act, Cap 21 Laws of Kenya. The said application seeks the following orders:
1. THAT the period for registering the charge dated 13th November, 2009 and made between A-plus motors Limited as the Chargor and Equity Bank Limited as the Chargee over Title No. Nairobi/Block 119/384 be extended and the same be filed with the Registrar of Companies within Forty Five (45) days from the date of this order or on such terms and conditions as seem to the court just and expedient.
2. THAT the cost of this application be in the cause.
During the hearing of the application, the applicant’s counsel, Mr. Karuga sought leave to register a charge out of time at the company’s registry. Further to the above, he submitted that the delay in registering the charge was caused by the misplacement of the file in the Lands office. Besides the above, he also submitted that the consent was only obtained on the 20th of March, 2010. It was his view that the delay was not within the control of the applicant. Apart from the above, he also explained that the application has been supported by the affidavit of Hiram Thimba together with the annextures. In addition to the above, he also submitted that the bank has always been willing to release the money after the charge has been registered. Unfortunately, the statutory period of 42 days has already expired. It was his contention that the respondent will suffer irreparable damage if the orders are not granted.
After carefully considering the application, I hereby grant the prayers sought. Specifically, I hereby direct that the period for registering the charge dated 13th November, 2009 and made between A-Plus Motors limited as the Chargor and Equity Bank Limited as the Chargee over Title Number Nairobi/ Block 119/384 be extended and the same be filed with the Registrar of Companies within 45 days from today’s date. Costs in the cause.
Those are the orders of this court.
MUGA APONDI
JUDGE
Ruling read, signed and delivered in open court in the presence of:
Ms Ithondeka for Oyatsi - Applicant’s Counsel
MUGA APONDI
JUDGE
30TH APRIL, 2010