[2010] KEHC 3627 (KLR)
The court found that the delay in registering the charge was satisfactorily explained by the existence of a prohibitory order against the properties, which was only lifted on 15th October 2009. Given that the applicant acted promptly after the removal of the prohibitory order and supported the application with an...
Source-derived case information.
- Citation
- [2010] KEHC 3627 (KLR)
- Parties
- Applicant: Zadok East Africa Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 53 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling
- Outcome
- application granted
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Companies Act Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Zadok East Africa Limited
Applicant
Procedural Posture
Miscellaneous Application / Ruling
Legal Issues
- 1 Whether the court should extend the time for registration of a charge under the Companies Act.
- 2 Whether the delay in registration was justified by the existence of a prohibitory order against the properties to be charged.
Ratio Decidendi
The court found that the delay in registering the charge was satisfactorily explained by the existence of a prohibitory order against the properties, which was only lifted on 15th October 2009. Given that the applicant acted promptly after the removal of the prohibitory order and supported the application with an affidavit, the court exercised its discretion under section 102 of the Companies Act to extend the time for registration. The extension was granted for a period of 45 days from the date of the ruling, ensuring that the charge would not be rendered void due to circumstances beyond the applicant's control.
Court Disposition
application granted
Orders
- Time to register the charge dated 19th March, 2009 by Fina Bank Limited in favour of Zadok East Africa Limited with the Registrar of Companies is extended by 45 days from the date of this ruling.
- Costs of the application to be in the cause.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 53 of 2010
IN THE MATTER OF ZADOK EAST AFRICA LIMITED
AND
IN THE MATTER OF THE COMPANIES ACT (CAP 486, LAWS OF KENYA)
AND
IN THE MATTER OF AN APPLICATION TO EXTEND TIME
TO REGISTER A CHARGE BY FINA BANK LIMITED
ZADOK EAST AFRICA LIMITED ……....…APPLICANT
R U L I N G
This ruling relates to a notice of motion application brought under section 96 and 102 of the Companies (High Court) rules Section 3A of the Civil Procedure Act, Order L Rule 1 of the Civil Procedure Rules. It seeks the following orders
1. THAT this Honourable Court be pleased to certify this application as urgent and the same be heard exparte on priority basis.
2. THAT this Honourable Court be pleased to extend the time within which to register the charge dated 19th March, 2009 by M/s ZADOK EAST AFRICA LIMITED in favour of Zadok East Africa Limited (“The Company”) with the Registrar of this Order.
3. THAT the costs of this application be in the cause.
During the hearing of the application, the applicant’s counsel Mr. Saende submitted that the time for registration of the charge dated 19th March 2009 had expired exposing the same to be rendered void. Besides the above, he also submitted that the delay to register the charge was occasioned by a discovery of a prohibitory order against the properties to be charged. Further to the above he also stated that the application is supported by the affidavit of Karen Moracha. In addition to the above, he also informed the court that the prohibitory order was lifted on 15th October, 2009.
After carefully considering the application together with the annextures, I hereby grant an order pursuant to section 102 of the Companies Act that the time to register the charge dated 19th March, 2009 by Fina Bank Limited in favour of Zadok East Africa Limited (“The Company”) with the Registrar of Companies be extended by a period of 45 days from today’s date.
Those are the orders of the court.
MUGA APONDI
JUDGE
Ruling read signed and delivered in open court in the presence of:
Mr. Saende - Applicant’s Counsel
MUGA APONDI
JUDGE
16TH FEBRUARY, 2010