[2010] KEHC 3630 (KLR)
The court found that the applicant had provided a reasonable explanation for the delay in registering the charge, namely, the failure of the Lands office to stamp the documents on time. The court exercised its discretion under section 102 of the Companies Act to extend the time for registration, as the statutory...
Source-derived case information.
- Citation
- [2010] KEHC 3630 (KLR)
- Parties
- Applicant: Equity Bank Limited; Respondent: Fourem Holdings
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 161 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Notice of Motion for Extension of Time to Register Charge
- Outcome
- application allowed
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Mortgagee Rights
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Equity Bank Limited
Applicant
Fourem Holdings
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Notice of Motion for Extension of Time to Register Charge
Legal Issues
- 1 Whether the court should grant an extension of time for registration of a company charge under section 102 of the Companies Act.
- 2 Whether the delay in registration was justified and excusable.
Ratio Decidendi
The court found that the applicant had provided a reasonable explanation for the delay in registering the charge, namely, the failure of the Lands office to stamp the documents on time. The court exercised its discretion under section 102 of the Companies Act to extend the time for registration, as the statutory requirements had not been met due to circumstances beyond the applicant’s control. The extension was necessary to enable the applicant to perfect its security and proceed with the transaction. The court was satisfied that the interests of justice would be served by granting the extension, and no prejudice would be occasioned to the respondent.
Court Disposition
application allowed
Orders
- Time for registration of the mortgage dated 2nd October 2009 created in favour of Equity Bank Limited by Fourem Holdings Limited over L.R. 158/31 (Original Number 158/18/1) is extended by 14 days from the date of this order.
- Costs of the application to be provided for.
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 161 of 2010
EQUITY BANK LIMITED …………...………….APPLICANT/MORTGAGEE
AND
FOUREM HOLDINGS………….…..…….…RESPONDENT/MORTGAGOR
R U L I N G
This ruling relates to a notice of motion application brought under sections 96, 97 and 102 of the Companies Act, Chapter 486 of the Laws of Kenya and Rule 8(b) of the Companies (High Court) Rules. It seeks the following orders
1. THAT this Honourable Court be pleased to grant an order pursuant to Section 102 of the Companies Act that the time for registration in the manner required by Section 96 of the said Act of a Charge dated the 2nd day of October, 2009 created in favour of Equity Bank Limited by Fourem Holdings Limited over L.R. No. 158/31 (Original Number 158/18/1) be extended to 14 days from the date of the order to be made herein or such other period as the court shall deem fit.
2. THAT costs of this Application be provided for.
During the hearing of the application, the applicant’s counsel, Mr. Muturi submitted that his client is seeking an extension under section 102 of the Companies Act to register a mortgagee in the company’s registry. Further to the above, he also submitted that the said mortgage is dated 2nd October 2009 and the time frame had lapsed on 7th December, 2009. According to the learned counsel, the delay was caused by the Lands office in failing to stamp the documents on time. In conclusion, he submitted that the applicant cannot release the funds till the mortgagee has been registered.
After carefully considering the application together with the annextures, I hereby direct that the time for registration of the mortgage dated 2nd October 2009 created in favour of Equity Bank Limited by Fourem Holdings Limited over L.R. 158/31 (Original Number 158/18/1) be extended by 14 days from today. The above order is made in compliance with section 96, 97 and 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:
Muturi - Applicant’s Counsel
MUGA APONDI
JUDGE
1ST MARCH, 2010