[2015] KEHC 1663 (KLR)
The court found that the failure to register the Fourth Further Debenture and Supplemental Further Charge within the statutory 42 days was due to inadvertence, specifically a delay in payment of stamp duty. The court was satisfied that no prejudice would be occasioned to any party or creditor by granting the...
Source-derived case information.
- Citation
- [2015] KEHC 1663 (KLR)
- Parties
- Applicant: Parbat Siyani Construction Limited; Applicant: I & M Bank Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 456 of 2015
- Procedural Posture
- Miscellaneous Application / Ruling
- Outcome
- application allowed
- Judges
- OA Sewe
- Legal Topics
- Company Charges, Registration of Debentures, Extension of Time, Banking Facilities
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Parbat Siyani Construction Limited
Applicant
I & M Bank Limited
Applicant
Procedural Posture
Miscellaneous Application / Ruling
Legal Issues
- 1 Whether the court should extend the statutory period for registration of the Fourth Further Debenture and Supplemental Further Charge under Section 96 of the Companies Act.
- 2 Whether the delay in registration was inadvertent and whether any prejudice would be occasioned by granting the extension.
Ratio Decidendi
The court found that the failure to register the Fourth Further Debenture and Supplemental Further Charge within the statutory 42 days was due to inadvertence, specifically a delay in payment of stamp duty. The court was satisfied that no prejudice would be occasioned to any party or creditor by granting the extension. Accordingly, the court exercised its discretion under Section 96 of the Companies Act and Section 3A of the Civil Procedure Act to allow the application and grant the extension of time for registration as prayed.
Court Disposition
application allowed
Orders
- The application dated 15th October, 2015 is allowed.
- Orders granted as prayed in Paragraph 1 and 2 of the application, extending time for registration of the Fourth Further Debenture and Supplemental Further Charge.
Full Case Text
Judgment text and source record
19 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI COMMERCIAL & ADMIRALTY DIVISION
MISC CIVIL APPLICATION CASE NO. 456 OF 2015
PARBAT SIYANI CONSTRUCTION LIMITED...........1ST APPLICANT
- VERSUS -
I & M BANK LIMITED……………………………….……2ND APPLICANT
RULING
The Notice of Motion dated 15th October, 2015 seeks orders that the Fourth Further Debenture and Supplemental Further Charge dated 14th August, 2015 made by Parbat Siyani Construction Limited in favour of I & M Bank Limited, charging LR No. 12715/9427 Machakos, be registered outside the statutory 42 days period and that a further 45 days be provided for that purpose. The Application is grounded on the affidavit annexed thereto of Daljit K. Solanki Advocate, sworn on 15th October, 2015.
The Application has been brought pursuant to Section 3A of the Civil Procedure Act Section 96 and 102 of the Companies Act, Cap 486 Law of Kenya Order 51 Rule 1 of the Civil Procedure Rules and Rule 8 (b) of the Companies (High Court) Rules. The grounds relied upon and that:
The 1st Applicant obtained additional banking facility of Kshs 370,000,00/- from the 2nd Applicant, and that amongst the securities was a Fourth Further Debenture over all of the 1st Applicants undertakings and assets as well as a Supplemental Further Charge over LR 12715/9427 Machakos.
That although the Fourth Further Debenture and Supplemental Further Charge were duly assessed for stamp duty on 18th August, 2015 there was a delay in paying the same, for which reason the aforesaid documents could not be registered within the Statutory 42 days as provided by Section 96 of the Companies Act.
That there is no prospect of prejudice to either party and no creditor will be affected if the time for registration of the documents at the Companies Registry is extended, as the failure was not deliberate or done with a fraudulent intention.
The Court has carefully considered the foregoing grounds as well as the averments set out in the Supporting Affidavit. The Court is satisfied that the omission to register the Charge and Debenture within the time prescribed by Section 96 of the Companies Act was due to inadvertence, and that no prejudice will be occasioned to any of the parties by reason of the proposed extension.
Accordingly, the application dated 15th October, 2015 is hereby allowed and orders granted as prayed in Paragraph 1 and 2 thereof.
It is so ordered.
RULING SIGNED, DATED AND DELIVERED AT NAIROBI THIS 27TH DAY OF OCTOBER 2015
OLGA SEWE
JUDGE