[2010] KEHC 750 (KLR)
The court found that the applicant had demonstrated sufficient cause for the delay in registering the charge and fixed debenture, as the delay was occasioned by the misplacement and subsequent recovery of the relevant deed file and title documents at the registry. The court exercised its discretion under section 102...
Source-derived case information.
- Citation
- [2010] KEHC 750 (KLR)
- Parties
- Applicant: Consolidated Bank of Kenya Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 383 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge and Debenture
- 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
Consolidated Bank of Kenya Limited
Applicant
Procedural Posture
Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge and Debenture
Legal Issues
- 1 Whether the court should extend the time for registration of a charge and fixed debenture under section 102 of the Companies Act.
- 2 Whether the applicant has provided sufficient reasons for the delay in registration.
Ratio Decidendi
The court found that the applicant had demonstrated sufficient cause for the delay in registering the charge and fixed debenture, as the delay was occasioned by the misplacement and subsequent recovery of the relevant deed file and title documents at the registry. The court exercised its discretion under section 102 of the Companies Act to grant an extension of 60 days from the date of the ruling for the registration of the charge and debenture. The court was satisfied that the applicant acted promptly upon recovery of the documents and that the extension would not prejudice any party.
Court Disposition
application allowed
Orders
- Time within which to register the charge dated 25th February, 2010 and the fixed debenture dated 31st December, 2009 by Lapimar Agencies Limited in respect of L.R. No. 2951/528 and Motor Vehicle Reg. No. KBJ 741 M with the Registrar of Companies is extended for a period of 60 days from the date of the ruling.
- 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 OF KENYA AT NAIROBI
(MILIMANI COMMERCIAL & TAX DIVISION)
MISC. APPLICATION NO. 383 OF 2010
IN THE MATTER OF LAPIMAR AGENCIES 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 AND FIXED DEBENTURE BY LAPIMAR AGENCIES LIMITED
CONSOLIDATED BANK OF KENYA LIMITED..................................................................APPLICANT
R U L I N G
This ruling relates to a notice of motion application filed in this court 4th May, 2010 and brought under Order L of the Civil Procedure Rules, Sections 96 and 102 of the Companies Act, rules 3 and 8(b) of the Companies (High Court) Rules, Section 3A of the Civil Procedure Rules and all enabling provisions of the law. The applicant 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 the Charge dated 25th day of February, 2010 together with the Fixed Debenture dated 31st day of December, 2009 by LAPIMAR AGENCIES LIMITED in respect of Land Reference Number 2951/528 and Motor Vehicle Registration Number KBJ 741 M respectively with the Registrar of Companies by a further sixty (60) 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 Mr. Asega requested the court to grant them 60 days to enable the applicants to register a charge and a fixed debenture. Further to the above, he reminded the court that under the Companies Act the above two documents have to be registered within 42 days of their creation. Besides the above, he has also submitted that the statutory period of 42 days has already lapsed. Apart from the above, he also submitted that the reasons for the delay are highlighted in the affidavit annexed to the application. According to paragraph 7 of the affidavit, the deponent has stated that on 5th April, 2010 he was informed that deed file in respect of the parcel L.R. No. 2981/528 had been misplaced and/or lost and efforts to locate the same to pave way for registration of the charge had not been successful. They were further advised that the title documents together with the charge documents booked for registration had been misplaced at the said registry. However on 13th April, 2010 they were informed by the Land Registrar, Nairobi that the said parcel file together with the title documents had finally been located, subsequent to which the charge was dully registered.
After carefully considering the application, I hereby concede to the same in terms of prayer No. 2. In that regard, I hereby direct that the time within which to register the charge dated 25th February, 2010 together with the fixed debenture dated 31st December, 2009 by Lapimar Agencies Limited in respect of L.R. No. 2951/528 and Motor Vehicle Reg. No. KBJ 741 M respectively with the Registrar of Companies be extended for a period of 60 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:
Ms. Kiniti for Mr. Asega - Applicant’s Counsel
MUGA APONDI
JUDGE
11TH JUNE 2010