[2024] KEHC 7075 (KLR)
The court found that the delay in registering the discharge of charge and the new charge was occasioned by late communication from the Company Registrar and the subsequent misplacement of documents, both of which were not attributable to the applicant's fault. The court held that, pursuant to Section 888(2)(b) of...
Source-derived case information.
- Citation
- [2024] KEHC 7075 (KLR)
- Parties
- Applicant: Faulu Microfinance Bank Ltd; Respondent: Mweru Properties Ltd
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application E12 of 2024
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time
- Outcome
- application allowed
- Judges
- MS Shariff
- Legal Topics
- Registration of Charges, Extension of Time, Companies Act Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Faulu Microfinance Bank Ltd
Applicant
Mweru Properties Ltd
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time
Legal Issues
- 1 Whether the court should grant an extension of time to register the discharge of charge and charge under the Companies Act.
- 2 Whether the delay in registration was justified under the circumstances.
Ratio Decidendi
The court found that the delay in registering the discharge of charge and the new charge was occasioned by late communication from the Company Registrar and the subsequent misplacement of documents, both of which were not attributable to the applicant's fault. The court held that, pursuant to Section 888(2)(b) of the Companies Act, it was just and equitable to grant an extension of time for registration. Accordingly, the application was allowed and a thirty-day extension period was granted from the date of the ruling for the applicant to complete the registration with the Registrar of Companies.
Court Disposition
application allowed
Orders
- The applicant is granted a thirty-day extension period from the date of the ruling within which to register the discharge of charge and the charge both dated 21st February 2024 with the Registrar of Companies.
- No order as to costs.
Full Case Text
Judgment text and source record
16 paragraphs
Faulu Microfinance Bank Ltd v Mweru Properties Ltd (Miscellaneous Application E12 of 2024) [2024] KEHC 7075 (KLR) (11 June 2024) (Ruling)
Neutral citation: [2024] KEHC 7075 (KLR)
Republic of Kenya
In the High Court at Kisumu
Miscellaneous Application E12 of 2024
MS Shariff, J
June 11, 2024
Between
Faulu Microfinance Bank Ltd
Applicant
and
Mweru Properties Ltd
Respondent
Ruling
1. I have perused the Applicant’s notice of motion dated 10. 6.2024 and the affidavit in support thereof sworn by Mitchell J. B. Menezes on even date and I am persuaded that the delay in effecting registration of the discharge of charge and charge in favour of Faulu Microfinance Bank Limited (as the chargee) by Mweru Properties Limited (as the chargor) was due to the late communication by Company Registrar of the rejection of the application for registration of the discharge of charge and charge compounded by the subsequent misplacement of the discharge of charge and charge upon the presentation for registration a second time wherefore I do find that pursuant to the provisions of Section 888 (2) (b) of the Companies Act it is just and equitable for this court to extend the limitation period and I thus allow this application and I make the following orders:-1. The Applicant is hereby granted a thirty days extension period from the date hereof within which to register the discharge of charge and the charge both dated 21st February 2024 with the Registrar of Companies.2. Given the nature of this application I shall not make any orders on costs.It is hereby so ordered.
DATED, SIGNED AND DELIVERED THIS 11TH DAY OF JUNE, 2024. M. S. SHARIFFJUDGE