[2010] KEHC 3546 (KLR)
The court found that Mini Holdings Limited had created a further charge in favour of Transnational Bank Limited, which was registered at the Ministry of Lands but not with the Registrar of Companies within the prescribed period. The applicant demonstrated that the delay was not deliberate and that the court has...
Source-derived case information.
- Citation
- [2010] KEHC 3546 (KLR)
- Parties
- Applicant: Mini Holdings Limited; Respondent: Transnational Bank Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 72 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Originating Notice of Motion for Extension of Time to Register 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
Mini Holdings Limited
Applicant
Transnational Bank Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Originating Notice of Motion for Extension of Time to Register Charge
Legal Issues
- 1 Whether the court should grant leave to register a further charge instrument out of time under the Companies Act.
- 2 Whether the court should extend the period for registration of the further charge instrument with the Registrar of Companies.
Ratio Decidendi
The court found that Mini Holdings Limited had created a further charge in favour of Transnational Bank Limited, which was registered at the Ministry of Lands but not with the Registrar of Companies within the prescribed period. The applicant demonstrated that the delay was not deliberate and that the court has statutory discretion under section 102 of the Companies Act to extend the time for registration. The court was satisfied that the interests of justice would be served by granting leave to register the charge out of time and by extending the period for registration. Accordingly, the court granted the application in terms of the substantive prayers sought, allowing the applicant...
Court Disposition
application granted
Orders
- Leave is granted to Mini Holdings Limited to register with the Registrar of Companies the further charge instrument dated 20th August 2009 created in favour of Transnational Bank Limited out of time.
- The time for registration with the Registrar of Companies of the further charge instrument is extended for a period of thirty (30) days from the date of this ruling.
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 72 of 2010
IN THE MATTER OF THE COMPANIES ACT CAP 486 LAWS OF KENYA
AND
IN THE MATTER OF AN APPLICATION BY MINI HOLDINGS LIMITED
R U L I N G
This ruling relates to an originating notice of motion application brought under section 102 of the Companies Act, Cap 486 Rule 8 of the Companies (High Court) Rules and Section 3A of the Civil Procedure Act. The said application seeks the following orders:
1. THAT this application be certified urgent.
2. THAT MINI HOLDINGS LIMITED be granted leave to register with the Registrar of Companies the Further Charge instrument dated 20th August, 2009 created in favour of Transnational Bank Limited out of time.
3. THAT this Honourable Court be pleased to extend the time for registration with the Registrar of Companies the Further Charge instrument for a further period of One Hundred and Twenty days (120) days from 2nd October, 2009.
During the hearing of the application the applicant’s counsel Ms Kemei submitted that the applicant has created another further charge in favour of Trans-National Bank Limited. The security has been registered at the Ministry of Lands. However, the applicant is unable to register the document with the Registrar of Companies since the time to do the same has already expired. The learned counsel reminded the court that it has the powers to extend the time for registration. Apart from the above, he also submitted that the application is supported by the affidavit of Hannah Cheptumo.
After considering the application carefully, together with the annextures, I hereby grant the same in terms of Prayer No. 2 and 3. Specifically, I hereby grant thirty (30) leave to the applicant to register with the Registrar of Companies the further charge instrument dated 20th August 2009 created in favour of Trans-National Bank Limited. Secondly, I hereby extend the time for registration with the Registrar of Companies the further charge instrument for a period of thirty (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: Mr. Kipng’etich for Ms. Kemei - Applicant’s Counsel
MUGA APONDI
JUDGE
16TH FEBRUARY 2010