[2010] KEHC 746 (KLR)
The court found that the delay in registering the charge was not deliberate and was occasioned by circumstances beyond the applicant's control, specifically the loss and misplacement of necessary documents at the lands office. The applicant had acted promptly once the documents were recovered, but by then the...
Source-derived case information.
- Citation
- [2010] KEHC 746 (KLR)
- Parties
- Applicant: Githunguri Cinema Company Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 400 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Extend Time to Register a Charge
- 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
Githunguri Cinema Company Limited
Applicant
Procedural Posture
Miscellaneous Application / Ruling on Application to Extend Time to Register a Charge
Legal Issues
- 1 Whether the court should extend the time for registration of a company charge under section 102 of the Companies Act.
- 2 Whether the delay in registration was excusable due to circumstances beyond the applicant's control.
Ratio Decidendi
The court found that the delay in registering the charge was not deliberate and was occasioned by circumstances beyond the applicant's control, specifically the loss and misplacement of necessary documents at the lands office. The applicant had acted promptly once the documents were recovered, but by then the statutory period had expired. The court exercised its discretion under section 102 of the Companies Act and granted the extension sought, finding that sufficient cause had been demonstrated for the failure to register the charge within the prescribed period.
Court Disposition
application granted
Orders
- Time to register the Charge dated 18th February, 2010 by Githunguri Cinema Company Limited over title No. I.R. 46752 (L.R. 209/2076) with the Registrar of Companies is extended by 30 days from the date of this ruling.
Full Case Text
Judgment text and source record
25 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI
(MILIMANI COMMERCIAL & TAX DIVISION)
MISC. APPLICATION NO. 400 OF 2010
IN THE MATTER OF THE GITHUNGURI CINEMA COMPANY 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 GITHUNGURI CINEMA COMPANY LIMITED
R U L I N G
This ruling relates to a notice of motion application brought under Order L of the Civil Procedure Rules, Sections 96 and 102 of the Companies Act and Rules 3 and 8(b) of the Companies (High Court) Rules. The said same seeks the following orders:
1. THAT this Honourable Court be pleased to certify this application as urgent and the same be heard on priority basis.
2. THAT this Honourable Court be pleased to extend the time within which to register a Charge dated 18th day of February, 2010 by GITHUNGURI CINEMA COMPANY LIMITED over Title Number I.R. 46752 (L.R. 209/2076) with the Registrar of Companies by a further thirty (30) days as per the powers conferred on it by section 102 of the Companies Act (Cap 486 Laws of Kenya)
3. THAT the costs of this application be in the cause.
During the hearing of the application the applicant’s counsel, Mrs. Gachomba urged this court to extend the time for registration of a Charge dated 18th February, 2010. Besides the above, she also submitted that the charge relates to the property I.R. 46752 (L.R. 209/2076) which was made by Githunguri Cinema Company Limited. Further to the above, she also submitted that the application is supported by her affidavit dated 7th May, 2010. Apart from the above, she also explained that they have made this application since the forty days provided by the Companies Act has expired. In addition to the above, she also submitted that the delay in presenting the charge was not deliberate since it was occasioned by loss of some documents in the lands office. Specifically, she submitted that the land rent payment records and the land parcels correspondence file were misplaced at the lands office. That apart, she also explained that the land clearance certificate and consent could not be obtained on time. Thereafter the charge was registered on 29th April 2010 and by then the 42 days had already expired. She also contended that the documents cannot be received by the Companies’ Registry unless they obtain an order from this court.
After carefully considering the application, this court hereby grants the same in terms of prayer No. 2. Specifically, I hereby direct that the time to register the Charge dated 18th February, 2010 by Githunguri Cinema Company Limited over title No. I.R. 46752 (L.R. 209/2076) with the Registrar of Companies be extended by a period of 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:
Mrs. Gachomba - Applicant’s Counsel
MUGA APONDI
JUDGE
17TH MAY 2010