[2021] KEHC 3907 (KLR)
The court found that the delay in registering the charge was occasioned by circumstances beyond the applicant's control, specifically issues at the Kajiado Lands Registry. The statutory period for registration had lapsed, but the Companies Act, 2015 empowers the court to grant an extension where justified. The...
Source-derived case information.
- Citation
- [2021] KEHC 3907 (KLR)
- Parties
- Applicant: Renava Investors and Consultants Limited; Respondent: KCB Bank Kenya Limited
- Court
- High Court
- Court Station
- High Court at Siaya
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Case E023 of 2021
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register Company Charge
- Outcome
- application granted
- Judges
- RE Aburili
- Legal Topics
- Company Charges, Registration of Charges, Extension of Time, Companies Act Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Renava Investors and Consultants Limited
Applicant
KCB Bank Kenya Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register Company Charge
Legal Issues
- 1 Whether the court has jurisdiction to extend time for registration of a company charge after the statutory period has lapsed.
- 2 Whether the applicant has provided sufficient grounds for extension of time to register the charge.
Ratio Decidendi
The court found that the delay in registering the charge was occasioned by circumstances beyond the applicant's control, specifically issues at the Kajiado Lands Registry. The statutory period for registration had lapsed, but the Companies Act, 2015 empowers the court to grant an extension where justified. The applicant demonstrated sufficient cause for the delay, and the court exercised its discretion to allow a further 30 days for registration of the charge to validate it. The court confirmed its jurisdiction to grant such relief and found the application merited.
Court Disposition
application granted
Orders
- The applicant is granted an extension of thirty (30) days from the date of this ruling within which to register the charge created on 5/8/2021 in favour of KCB Bank Kenya Limited over LR No. South Sakwa/Barkowino/10253.
Full Case Text
Judgment text and source record
21 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT SIAYA
MISCELLANEOUS CIVIL CASE NO. E023 OF 2021
CORAM: HON. R.E. ABURILI, J
IN THE MATTER OF SECTIONS 878, 884, 885 AND 888 OF THE COMPANIES ACT, 2015
AND
IN THE MATTER OF APPLICATION BY RENAVA INVESTORS AND
CONSULTANTS LIMITED (“THE COMPANY”).................APPLICANT
RULING
1. The applicant herein is the firm of Watako Kirui and Co. Advocates on behalf of the Renava Investors and consultants Limited (The Company).
2. Vide a Chamber summons dated 16/9/2021, the company seeks orders that it be allowed an extension of time for a further 30 days within which to register, with the registrar of Companies, a charge dated 5th August 2021 created by the Company herein Renava Investors and Consultant Limited in favour of KCB Bank Kenya Limited over LR No. South Sakwa/Barkowino/10253.
3. The application is supported by grounds on the face thereof and an affidavit shown by Eve Vivian Ouko advocate explaining circumstances under which the delay in registering the charge was occasioned.
4. The delay, according to the application, was unavoidable and was occasioned by Kajiado Lands Registry leading to lapse of the statutory period of 30 days required by law hence the Registrar of Companies declined to accept the registration.
5. The law requires that any charge created by company should be registered at the Companies Registry within 30 days of its creation. That period having lapsed on 4/9/2021, to validate the charge, extension of time is necessary. The charge was created on 5/5/2021.
6. I agree with the applicant that this court has jurisdiction to extend the time for registration of the charge.
7. Accordingly, I grant the prayers sought and order that the charge created on 5/8/2021 which lapsed on 4/9/2021 shall have a further lifespan of thirty (30) days from the date of this Ruling within which it shall be registered.
8. Orders accordingly.
Dated, signed and Delivered at Siaya this 20th Day of September 2021
R.E. ABURILI
JUDGE