[2009] KEHC 1138 (KLR)
The court found that the delay in registration of the further and supplemental charges was occasioned by the Commissioner of Lands' delay in issuing title numbers, which was beyond the applicant's control. The process of registering the documents was completed as soon as practicable after the titles were issued. The...
Source-derived case information.
- Citation
- [2009] KEHC 1138 (KLR)
- Parties
- Plaintiff: Housing Finance Company of Kenya Limited; Defendant: IBRD House Limited; Respondent: Registrar of Companies
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Miscellaneous Application 891 of 2009
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
- Outcome
- application granted
- Judges
- A. Ong’injo
- Legal Topics
- Company Charges, Registration of Charges, Extension of Time, Company Law Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Housing Finance Company of Kenya Limited
Plaintiff
IBRD House Limited
Defendant
Registrar of Companies
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
Legal Issues
- 1 Whether the court should grant an extension of time for registration of the further and supplemental charges under the Companies Act.
- 2 Whether the delay in registration was justified and excusable under the circumstances.
Ratio Decidendi
The court found that the delay in registration of the further and supplemental charges was occasioned by the Commissioner of Lands' delay in issuing title numbers, which was beyond the applicant's control. The process of registering the documents was completed as soon as practicable after the titles were issued. The court exercised its discretion under section 102 of the Companies Act to grant an extension of 30 days for registration of the charges, finding that no party would suffer prejudice as a result. The extension was necessary to regularize the registration and ensure compliance with statutory requirements.
Court Disposition
application granted
Orders
- Time for registration of the further charge dated 17th July 2009 and the supplemental charge of the same date between IBRD House Limited and Housing Finance Company of Kenya Limited is extended for a period of 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
25 paragraphs
IN THE MATTER OF THE COMPANIES ACT (CAP 486) LAWS OF KENYA
AND
IN THE MATTER OF AN APPLICATION BY HOUSING FINANCE COMPANY OF KENYA LIMITED UNDER SECTION 96 AND 102 OF THE COMPANIES ACT FOR EXTENSION OF TIME FOR REGISTRATION OF CHARGE
BETWEEN
HOUSING FINANCE CO. OF KENYA LTD……………………..PLAINTIFF
AND
IBRD HOUSE LIMITED…………………………………..………...CHARGOR
VERSUS
REGISTRAR OF COMPANIES………………………….…….RESPONDENT
R U L I N G
This application relates to a notice of motion brought under Sections 96, 97, 98 and 102 of the Companies Act, Chapter 486 of the Laws of Kenya and Rule 8(b) of the Companies (High Court) rules and Section 3A of the Civil Procedure Act, Chapter 21 Laws of Kenya. The same seeks the following orders:
1. THAT this Honourable Court be pleased to give an Order for extension of time to enable the Plaintiff/Applicant register: -
(a)The Further Charge dated 17th July 2009 created over Flat Number A 11 erected on Land Reference Number 209/88/25; and
(b)The Supplemental Charge dated 17th July 2009 created over Flat Numbers A 12, B 10 and B 12 erected on and Reference Number 209/88/25
And both made in its favour by the Chargor in the Companies Registry out of time
2. THAT the costs of this application be in the cause.
During the hearing of the application, Mrs. Kiama, for the Chargor, urged the court to make an order for extension of time to enable them to register the further charge dated 17th July, 2009 over Flat No. A11 erected on LR. No. 209/88/25 and supplemental charge dated 17th July, 2009 created over Flat No. 2 A12, B10 and B12 erected on LR. No. 209/88/25. Further to the above, she also submitted that both charges are registered over immovable property owned by a limited liability company. In addition to the above, Mrs. Kiama submitted that the delay in the registration of the charges at the registry was occasioned by the Commissioner of Lands in issuing title numbers to the leases for the above mentioned flats. Apart from the above, she also submitted that the whole process of registering documents was finalized on 29th September, 2009.
After carefully considering the application together with the attached documents, I hereby direct that the time for registration of the charge dated 17th July 2009, and the supplemental charge of the same date between IBRD House Limited and Housing Finance Company of Kenya Limited be extended for a period of 30 days from today. That is in conformity to sec.102 of the Companies Act, Cap 486, Laws of Kenya. Both parties will not suffer any prejudice due to the above. That is the order of this court.
MUGA APONDI
JUDGE
Ruling read, signed and delivered in open court in the presence of……………………………………………….…………………….for Chargor
Muchigi for Mrs. Kiama for Chargee
MUGA APONDI
JUDGE
26TH OCTOBER, 2009