[2009] KEHC 1395 (KLR)
The court found that the failure to register the charge and further charge within the statutory period was due to the default of the applicant's former advocates and not the applicant itself. The court exercised its discretion under section 102 of the Companies Act to grant an extension of 30 days for registration,...
Source-derived case information.
- Citation
- [2009] KEHC 1395 (KLR)
- Parties
- Applicant: Kenya Commercial Bank Limited; Respondent: Riva Petroleum Dealers Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Children Miscellaneous Application 698 of 2009
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge
- Outcome
- application allowed in part
- 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
Kenya Commercial Bank Limited
Applicant
Riva Petroleum Dealers Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge
Legal Issues
- 1 Whether the court should extend the time for registration of the charge and further charge under the Companies Act.
- 2 Whether the omission to register the charges within the statutory period was excusable.
Ratio Decidendi
The court found that the failure to register the charge and further charge within the statutory period was due to the default of the applicant's former advocates and not the applicant itself. The court exercised its discretion under section 102 of the Companies Act to grant an extension of 30 days for registration, holding that the applicant would otherwise suffer prejudice and that the extension would not prejudice the respondent. The court emphasized that the statutory framework allows for such extensions where sufficient cause is demonstrated and that the interests of justice required the applicant to be granted additional time to regularize the registration of the charges.
Court Disposition
application allowed in part
Orders
- Time for registration of the charge and further charge between Riva Petroleum Dealers Limited and Kenya Commercial Bank Limited is extended for a period of 30 days from the date of the order.
- Costs of the application to be in the cause.
Full Case Text
Judgment text and source record
25 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT
AT NAIROBI
MILIMANI COMMERCIAL AND ADMIRALTY DIVISION
Miscellaneous Application 698 of 2009
IN THE MATTER OF RIVA PETROLEUM DEALERS 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 CHARGE AND FURTHER CHARGE BY KENYA COMMERCIAL BANK LIMITED
KENYA COMMERCIAL BANK LIMITED …………………..……..…APPLICANT
R U L I N G
This application has been brought through notice of motion under section 96 and 102 of the Companies Act, Rules 3 and 8(b) of the Companies (High Court) Rules, section 3A of the Civil Procedure Act, Order L Rule 1 of the Civil Procedure Rules. The said application seeks the following orders:
1. THAT this Honourable Court be pleased to extend the time within which to register the Charge dated 15th February 2006 and Further Charge dated 16th November 2006 by M/s Kenya Commercial Bank Limited in favour of Riva Petroleum Dealers Limited (“the Company”) with the Registrar of Companies by a further forty five (45) days from the date of issue of this order.
2. THAT the costs of this application be in the cause.
During the hearing of the application, Ms Mate, the applicant’s counsel, submitted that they were seeking an extension of 45 days from the date that I issue the order since the period of 42 days provided by the law for registration of the charge and further charge with the Registrar of Company has elapsed. According to her, the omission to register the above is attributable to the default of the applicant’s former advocates. Subsequently, the applicant discovered that the two charges had not been registered by the Registrar of Companies as required by the rules. She was of the opinion that the applicant was not responsible for the omission and that he stands to suffer great prejudice because the charge and further charge will be rendered void in the event that the application is not allowed.
This court has carefully considered the application together with the supporting affidavit. In view of the above, I hereby direct that the time for registration of the charge and further charge between Riva Petroleum Dealers Limited and Kenya Commercial Bank Limited be extended for a period of 30 days in conformity with section 102 of the Companies Act, Cap 486, Laws of Kenya. The court notes that the said extension will not prejudice the respondent in any manner. That is the order of the court.
M. APONDI
JUDGE
Ruling read signed and delivered in open court in the presence
of………………………………………………………Applicant’s Counsel
……………………………………………………….Respondent’s Counsel
M. APONDI
JUDGE
3RD NOVEMBER, 2009