[2011] KEHC 772 (KLR)
The court found that the applicant had provided a satisfactory explanation for the delay in registering the charge, specifically attributing the delay to the lack of consent from the Land’s Office. The court was satisfied that the delay was not inordinate and that the applicant acted in good faith. In exercising its...
Source-derived case information.
- Citation
- [2011] KEHC 772 (KLR)
- Parties
- Applicant: Kina Mizizi Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 800 of 2011
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
- Outcome
- application allowed
- 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
Kina Mizizi Limited
Applicant
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
Legal Issues
- 1 Whether the applicant should be granted an extension of time to register a company charge under the Companies Act.
- 2 Whether the delay in registration was justified and not inordinate.
Ratio Decidendi
The court found that the applicant had provided a satisfactory explanation for the delay in registering the charge, specifically attributing the delay to the lack of consent from the Land’s Office. The court was satisfied that the delay was not inordinate and that the applicant acted in good faith. In exercising its discretion under the Companies Act and the Civil Procedure Act, the court granted the extension sought, allowing the charge to be registered within 30 days from the date of the order. The court emphasized the importance of substantive justice over technicalities, especially where the applicant has demonstrated a genuine cause for the delay.
Court Disposition
application allowed
Orders
- The applicant is granted an extension of 30 days from the date of this order to register the charge at the Companies Registry.
- The charge shall be presented for registration at the Companies Registry within thirty (30) days from the date of this order.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLICOF KENYA
IN THE HIGH COURT OF KENYA
AT MILIMANI COMMERCIAL COURTS
MISCELLANEOUS CIVIL APPLICATION CASE NO. 800 OF 2011
IN THE MATTER OF THE COMPANIES ACT (CAP 486 OF THE LAWS OF KENYA)
AND
IN THE MATTER OF AN APPLICATION BY KINA MIZIZI LIMITED (APPLICANT) FOR EXTENSION OF TIME FOR REGISTRATION OF CHARGE
RULING
On 22nd September 2011, the applicant filed a notice of motion under Order L Rule 1 of the Civil Procedure Rules, Section 3A of the Civil Procedure Act, Section 96, 97 and 102 of the Companies Act (Cap 486 Laws of Kenya) Rule 8 (b) of the Companies (High Court) Rules and all other enabling provisions of the law seeking the following orders:-
1. That the applicant be granted an extension of time for the registration of the Charge referred to in the said affidavit at the Companies Registry.
2. That the Charge be presented for registration at the Companies Registry within thirty (30) days from the date of the order granting the extension sought herein.
3. That the costs of this application be in the cause.
During the hearing of the application, the applicant’s counsel Mr. Ataka submitted that they are seeking an extension to register a Charge dated 20th June 2011. According to the learned counsel, the cause of delay was due to lack of consent from the Land’s Office. He further contended that there was no inordinate delay in this transaction. On the basis of the above, he has urged this court to grant an extension of 30 days to register the Charge. From the record, the applicant has relied heavily on the affidavit of Margaret Njeri Kinyanjui who explained the cause of the delay in paragraphs 4, 5, 6, 7 and 8 of the same.
After carefully considering the application, together with the annextures herein, I hereby concede to the same in terms of prayers number 1 and 2. In that regard, I hereby grant an extension of 30 days from today to enable the Charge to be registered in the Company’s Registry.
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
24TH OCTOBER, 2011