[2023] KEHC 2166 (KLR)
The court found that the delay in registering the charge was neither inordinate nor deliberate and was satisfactorily explained as inadvertence by the applicants' counsel. The court held that Section 888 of the Companies Act empowers it to extend the time for registration of a charge where the statutory period has...
Source-derived case information.
- Citation
- [2023] KEHC 2166 (KLR)
- Parties
- Applicant: HFC Limited; Applicant: Veinte Limited
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 32 of 2023
- Procedural Posture
- Miscellaneous Application / Ex Parte Application for Extension of Time to Register a Charge
- Outcome
- Application granted; time for registration of the charge extended by thirty days.
- Judges
- RE Aburili
- Legal Topics
- Company Charge Registration, Extension of Time, Statutory Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
HFC Limited
Applicant
Veinte Limited
Applicant
Procedural Posture
Miscellaneous Application / Ex Parte Application for Extension of Time to Register a Charge
Legal Issues
- 1 Whether the court should extend the time for registration of a charge under the Companies Act after the statutory period has lapsed.
- 2 Whether the delay in registration was inordinate or deliberate.
- 3 Whether any prejudice would be occasioned by granting the extension.
Ratio Decidendi
The court found that the delay in registering the charge was neither inordinate nor deliberate and was satisfactorily explained as inadvertence by the applicants' counsel. The court held that Section 888 of the Companies Act empowers it to extend the time for registration of a charge where the statutory period has lapsed. Since the applicants had complied with all other legal requirements and no prejudice would be occasioned by granting the extension, the court exercised its discretion to extend the registration period by thirty days from the date of the ruling. The court further ordered that upon registration within the extended period, the charge would be deemed duly filed in compliance...
Court Disposition
Application granted; time for registration of the charge extended by thirty days.
Orders
- Time within which to register the charge dated December 2, 2022 over LR No. Kisumu/Manyatta ‘A’/4633 in favour of HFC Limited with the Registrar of Companies is extended by thirty (30) days from the date of this ruling.
- Upon registration within the extended period, the charge shall be deemed duly filed with the Registrar of Companies in full compliance with the Companies Act, 2015.
Full Case Text
Judgment text and source record
25 paragraphs
In re HFC Limited & another (Miscellaneous Civil Application 32 of 2023) [2023] KEHC 2166 (KLR) (22 March 2023) (Ruling)
Neutral citation: [2023] KEHC 2166 (KLR)
Republic of Kenya
In the High Court at Kisumu
Miscellaneous Civil Application 32 of 2023
RE Aburili, J
March 22, 2023
In The Matter of The Companies Act And In The Matter Of An Application To Extend The Time For Registration Of A Charge By
In the matter of
HFC Limited
1st Applicant
Veinte Limited
2nd Applicant
Ruling
1. I have considered the application dated March 21, 2023 under Certificate of urgency. I certify it urgent.
2. On the merits of the application, I observe that the application is exparte and no prejudice shall be occasioned to any party if the orders sought are granted.
3. I have considered the grounds for the delay in the registration of the charge dated December 2, 2023 issued by the 2nd Applicant, Veinte Limited over Land Ref. No. Kisumu/Manyatta ‘A’/4633 in favour of the 1st Applicant, HFC Limited with the Registrar of Companies.
4. I am satisfied that the delay was not inordinate and neither was it deliberate. This court is empowered by the provisions of Section 888 of the Companies Act to extend the time within which to register the charge where such time has lapsed. In this case, the law prescribes thirty (30) days within which such charge once created should be registered with the Registrar of Companies.
5. The inadvertence in the presentation is owned up by counsel for the applicants. Such registration is a requirement of the law and not discretionary. The parties/applicants have complied with all the provisions of the law in creating the charge save for registration.
6. For the above reasons, I grant the prayers sought in the application dated March 21, 2023 and order that the time within which to register the charge dated December 2, 2022 issued to Veinte Limited over LR No Kisumu/Manyatta ‘A’/4633 in favour of HFC Limited with the Registrar of Companies having lapsed, is hereby extended by a further thirty (30) days from the date of this Ruling.
7. I further order that once the above stated charge dated December 2, 2022 is so registered, the said charge shall be deemed to have been duly filed with the Registrar of Companies in full compliance with the Companies Act, 2015.
8. I make no orders as to costs.
9. This Ruling and order be typed and or extracted forthwith. I so order.
10. This file is hereby closed.
DATED, SIGNED AND DELIVERED AT KISUMU THIS 22ND DAY OF MARCH, 2023R. E. ABURILIJUDGE