[2009] KEHC 656 (KLR)
The court found that the omission to register the further charge within the statutory forty-two days was due to inadvertence, not intentional default. The applicant demonstrated that the delay resulted from administrative mishaps at the Lands Registry, including rejection and misplacement of documents. The court was...
Source-derived case information.
- Citation
- [2009] KEHC 656 (KLR)
- Parties
- Applicant: Njowabu Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Children Miscellaneous Application 985 of 2009
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time for Registration of Further 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
Njowabu Limited
Applicant
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time for Registration of Further Charge
Legal Issues
- 1 Whether the court should grant an extension of time for registration of a further charge under Section 102 of the Companies Act.
- 2 Whether the omission to register the further charge within the statutory period was inadvertent and excusable.
- 3 Whether granting the extension would prejudice any party.
Ratio Decidendi
The court found that the omission to register the further charge within the statutory forty-two days was due to inadvertence, not intentional default. The applicant demonstrated that the delay resulted from administrative mishaps at the Lands Registry, including rejection and misplacement of documents. The court was satisfied that the requirements of Section 102 of the Companies Act were met, and that no party would be prejudiced by granting the extension. Accordingly, the court exercised its discretion to extend the time for registration of the further charge by thirty days from the date of the ruling.
Court Disposition
application granted
Orders
- Time for registration of the further charge dated 14th September, 2009 is extended by a period of 30 days from the date of this ruling.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI (MILIMANI COMMERCIAL COURTS)
Miscellaneous Application 985 of 2009
IN THE MATTER OF NJOWABU LIMITED
AND
IN THE MATTER OF THE COMPANIES ACT, CHAPTER 486 OF THE LAWS OF KENYA
AND
IN THE MATTER OF AN APPLICATION FOR EXTENSION OF TIME FOR REGISTRATION OF FURTHER CHARGE BY THE REGISTRAR OF COMPANIES
R U L I N G
The application has been brought through Notice of Motion application under section 102 of the Companies Act, Chapter 486 of the Laws of Kenya, Rule 8(b) of the Companies (High Court) Rules. The applicant’s counsel prayed for extension of time for registration of the Further Charge dated 14th September, 2009. The application was premised on the following grounds.
1. The omission to register the further Charge within forty two days of its creation was due to inadvertence.
2. On being lodged for registration at the Lands Registry on 2nd October, 2009 the Further Charge was rejected thereby necessitating a rebooking.
3. The Further charge was again longed for registration on 19th October, 2009 and was endorsed on the same day. However, it was misplaced and/or could not be traced at the registry until 5th November 2009 when it was found.
4. The Omission to deliver the Further Charge to the Registrar of Companies for registration within the requisite period was not intentional.
5. It is in the interest of justice that the time for registration at the Companies Registry is extended.
During the hearing of the application, Mr. Waweru for the applicant submitted that he was seeking an extension to register a charge under Section 102 of the Companies Act. Further to the above he also submitted that a further charge was created on 14th September, 2009 and lodged for registration at the Lands Office on 2nd October, 2009. However, the same was rejected by the Registrar which necessitated the re-submission of the further charge on 19th October, 2009. The same was only registered on 5th November, 2009 which was beyond the 42 days required for registration. After carefully considering the application together with the annextures, I hereby direct that the time for registration of the further charge dated 14th September, 2009 be extended by a period of 30 days from today. The court notes that the same will be in conformity with Section 102 of the Companies Act, Cap 486, Laws of Kenya. In addition to the above, the court notes that the order will not prejudice any of the parties.
MUGA APONDI
JUDGE
Ruling read signed and delivered in open court in the presence of:
……………………………………………………Applicant’s Counsel
MUGA APONDI
JUDGE
27TH NOVEMBER 2009