[2018] KEHC 9116 (KLR)
The court found that the applicant's failure to register the charges within the prescribed period was due to inadvertence, as evidenced by the affidavit of the applicant's director. The court was satisfied that the delay was not intentional and that granting the extension would not prejudice the position of...
Source-derived case information.
- Citation
- [2018] KEHC 9116 (KLR)
- Parties
- Applicant: Gulf Energy Limited; Respondent: Equity Bank (K) Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 121 of 2018
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register Company Charges
- Outcome
- application granted
- Judges
- MM Kasango
- Legal Topics
- Company Charges, 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
Gulf Energy Limited
Applicant
Equity Bank (K) Ltd
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register Company Charges
Legal Issues
- 1 Whether the applicant should be granted an extension of time to register company charges under Section 885(1) of the Companies Act, 2015.
- 2 Whether the failure to register the charges was due to inadvertence and if such failure prejudices creditors or members of the company.
Ratio Decidendi
The court found that the applicant's failure to register the charges within the prescribed period was due to inadvertence, as evidenced by the affidavit of the applicant's director. The court was satisfied that the delay was not intentional and that granting the extension would not prejudice the position of creditors or members of the company. Accordingly, the court exercised its discretion under Section 888 of the Companies Act 2015 to grant the applicant 120 days from the date of the order to complete the registration of the charges as required by Section 885(1) of the Act.
Court Disposition
application granted
Orders
- The applicant is granted 120 days from the date of this order to register the charges as required under Section 885(1) of the Companies Act 2015.
- There shall be no order as to costs of the Notice of Motion dated 20th April 2018.
Full Case Text
Judgment text and source record
18 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
COMMERCIAL AND TAX DIVISION
MISCELLANEOUS CIVIL APPL. NO. 121 OF 2018
IN THE MATTER OF COMPANIES ACT, 2015
AND
IN THE MATTER OF AN APPLICATION BY GULF ENERGY LIMITED
RULING
1. By Notice of Motion dated 20th April 2018, the applicant, Gulf Energy Limited, seeks orders pursuant to Section 888 of the Company’s Act 2015 (The Act). The applicant seeks for time, for registration in the manner prescribed in Section 885(1) of the Act of the stated charges, to be extended for a period of 120 days from the date of the Order of this Court.
2. By an affidavit of Duncan Kingori Mukira, director of Gulf Energy Limited, in support of the application it is deponed that the applicant charged various pieces of land to Equity Bank (K) Ltd as security for credit facility.
3. That the conduct of preparing and registering charges was given to the law firm of Hamilton Harrison & Mathews. The deponent set out in his affidavit the reason why those charges have not been registered.
4. Having considered the application, I am satisfied that the failure to register was due to inadvertence and is not of a nature to prejudice the position of the creditors or members of the company.
5. Accordingly, I hereby grant 120 days from the date of this order for registration as required under Section 885 (1) of the Company’s Act 2015. There shall be no orders as to costs of the Notice of Motion dated 20th April 2018.
DATED, SIGNED and DELIVERED at NAIROBI this22ndday of May2018.
MARY N. KASANGO
JUDGE
Ruling read in open court in the presence of
……………………..............for the Applicant