[2010] KEHC 754 (KLR)
The court found that the applicant had provided a satisfactory explanation for the delay in registering the charge. The delay was occasioned by the need to clear outstanding land rent and obtain the necessary clearance certificates, which were prerequisites for registration. Upon obtaining these documents, the...
Source-derived case information.
- Citation
- [2010] KEHC 754 (KLR)
- Parties
- Applicant: The Co-operative Bank of Kenya Limited; Respondent: Muoroto Thuita Investments Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 382 of 2010
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Extend Time for Registration of 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
The Co-operative Bank of Kenya Limited
Applicant
Muoroto Thuita Investments Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application to Extend Time for Registration of Charge
Legal Issues
- 1 Whether the court should exercise its discretion to extend the time for registration of a company charge under section 102 of the Companies Act.
- 2 Whether the applicant has provided sufficient justification for the delay in registering the charge.
Ratio Decidendi
The court found that the applicant had provided a satisfactory explanation for the delay in registering the charge. The delay was occasioned by the need to clear outstanding land rent and obtain the necessary clearance certificates, which were prerequisites for registration. Upon obtaining these documents, the applicant acted without undue delay. The court exercised its discretion under section 102 of the Companies Act and granted an extension of 60 days for the registration of the charge, holding that the interests of justice would be served by allowing the extension.
Court Disposition
application granted
Orders
- Time within which to register the charge dated 9th March, 2010 by Muoroto Thuita Investments Limited on L.R. No. 209/1672/1 with the Registrar of Companies is extended by a further 60 days from 11th June 2010.
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. 382 OF 2010
IN THE MATTER OF MUOROTO THUITA INVESTMENT 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 MUOROTO THUITA INVESTMENTS LIMITED
THE CO-OPERATIVE 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. The application is 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 9th day of March, 2010 by MUOROTO THUITA INVESTMENTS LIMITED Land Reference Number 209/1672/1 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 Mr. Asega, the applicant’s advocate urged this court to grant prayer No. 2 that seeks the leave of court to register a charge dated 9th March, 2010 with the Registrar of Companies. Apart from the above he submitted that the 42 days mandatory period had already elapsed thus necessitating the current application. In addition to the above, he also submitted that the delay in registration of the charge is reflected in the annexed affidavit and specifically in paragraph 4 and 7 of the same. According to paragraph 4 of the affidavit the applicant’s counsel were informed at the lands office that the company had not paid land rent for the previous 4 years, in which case the company was supposed to produce land rent payment receipts. Paragraph 7 of the affidavit states that upon verification of the land rate payment receipts the applicant’s advocates obtained the completion documents (Land Rent Clearance Certificate together with the consent to charge) on 19th April, 2010 and on the same date the charge was duly presented for registration.
After carefully considering the application I hereby grant the same in terms of prayer No. 2. In that regard, I hereby direct that the time within which to register the charge dated 9th March, 2010 by Muhoroto Thuita Investments Limited on L.R. No. 209/1672/1 with the Registrar of Companies be extended by a further 60 days from today. That is in compliance with my powers conferred on me by section 1 of the Companies Act (Cap 486 Laws of Kenya).
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