[2010] KEHC 3626 (KLR)
The court found that the applicant had demonstrated sufficient cause for the delay in registering the charge and further debenture. The delay was attributed to procedural difficulties at the Companies Registry and the Commissioner of Lands, including issues with stamp duty and collateral documentation, rather than...
Source-derived case information.
- Citation
- [2010] KEHC 3626 (KLR)
- Parties
- Applicant: Pan Africa Chemicals Limited; Respondent: Bank of Baroda (Kenya) Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 90 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Notice of Motion for Extension of Time to Register Charge and Debenture
- Outcome
- application granted
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Debenture Registration
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Pan Africa Chemicals Limited
Applicant
Bank of Baroda (Kenya) Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Notice of Motion for Extension of Time to Register Charge and Debenture
Legal Issues
- 1 Whether the court should extend the time for registration of the charge and further debenture under the Companies Act.
- 2 Whether the applicant has provided sufficient reasons for the delay in registration.
Ratio Decidendi
The court found that the applicant had demonstrated sufficient cause for the delay in registering the charge and further debenture. The delay was attributed to procedural difficulties at the Companies Registry and the Commissioner of Lands, including issues with stamp duty and collateral documentation, rather than any fault or negligence on the part of the applicant. The applicant acted promptly upon receiving the documents and made diligent efforts to comply with the statutory requirements. In the interests of justice and to facilitate the disbursement of the loan, the court exercised its discretion to extend the time for registration by thirty days from the date of the ruling.
Court Disposition
application granted
Orders
- Time for registration of the charge and further debenture from Pan Africa Chemicals Limited to Bank of Baroda (Kenya) Limited dated 17th November, 2009 is extended for thirty (30) days from 15th February 2010.
Full Case Text
Judgment text and source record
20 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 90 of 2010
IN THE MATTER OF PAN AFRICA CHEMICALS LIMITED
AND
IN THE MATTER OF THE COMPANIES ACT.
R U L I N G
This ruling relates to a notice of motion application brought under section 102 of the Companies Act, Cap 486 Rule 8(b) of the Companies (High Court) Rules. The said application seeks the following orders:
1. THAT this application be certified urgent and heard exparte.
2. THAT this Honourable Court be pleased to extend the time for the registration of the Charge and Further Debenture from Pan Africa Chemicals Limited to Bank of Baroda (Kenya) Limited dated 17th November, 2009.
3. THAT the costs of this application be in the cause.
During the hearing of the application, the applicant’s counsel, Mrs. Jan Mohammed submitted that the reason for the urgency is that a loan is to be disbursed to Pan Africa Chemicals Limited. However, until the Charge and Further Debenture are registered at the Company’s Registries the funds cannot be disbursed. She further informed the court that the requisite 42 days period had already expired. Apart from the above, she also submitted that Mr. Menezes Advocates sent her the documents on 30th November, 2009. Consequently on 2nd December 2009, they presented the documents at the Company’s registry but they were rejected on the ground that stamp duty had not been paid since one document was collateral on another. Thereafter, she wrote a letter to her instructing advocate on 3rd December, 2009, and she received his response on the following day. On going to the Commissioner of Lands on 8th December, 2009 they rejected the document again. It was only on 4th January 2010 that they were able to convince the above office that all was well.
After carefully considering the application together with the annextures, I hereby grant the same in terms of prayer No. 2. specifically, I hereby direct that the time for the registration of the charge and further debenture from Pan Africa Chemicals Limited to Bank of Baroda (Kenya) Limited dated 17th November, 2009 be extended for thirty (30) days from today.
Those are the orders of this court.
MUGA APONDI
JUDGE
Ruling read signed and delivered in open court in the presence of:
………………………………………………………Applicant’s Counsel
MUGA APONDI
JUDGE
15TH FEBRUARY 2010