[2009] KEHC 641 (KLR)
The court found that the delay in registering the charge was occasioned by the late payment of stamp duty and stamping, which constituted sufficient cause for the extension sought. The court exercised its discretion under Section 102 of the Companies Act and Rule 8(b) of the Companies (High Court Rules) to grant an...
Source-derived case information.
- Citation
- [2009] KEHC 641 (KLR)
- Parties
- Applicant: Commercial Bank of Africa Limited; Respondent: Rangechem Pharmaceuticals Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Environment & Land Miscellaneous Case 903 of 2009
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
- Outcome
- application allowed
- Judges
- A. Ong’injo
- Legal Topics
- Company Charge Registration, Extension of Time, Stamp Duty Delay
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Commercial Bank of Africa Limited
Applicant
Rangechem Pharmaceuticals Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Time to Register Charge
Legal Issues
- 1 Whether the court should extend time for the registration of a charge over Land Reference Number 209/11011/6 in favour of the applicant.
- 2 Whether the delay in registration due to late payment of stamp duty and stamping constitutes sufficient cause for extension.
- 3 Whether any party would be prejudiced by the grant of the extension.
Ratio Decidendi
The court found that the delay in registering the charge was occasioned by the late payment of stamp duty and stamping, which constituted sufficient cause for the extension sought. The court exercised its discretion under Section 102 of the Companies Act and Rule 8(b) of the Companies (High Court Rules) to grant an extension of 30 days for registration of the charge. The court further noted that no party would be adversely affected by the extension, and that the interests of justice required the applicant to be allowed to regularize the registration to validate its security over the property.
Court Disposition
application allowed
Orders
- Time for registration of a charge over Land Reference No. 209/11011/6 in the names of Rangechem Pharmaceuticals Limited is extended for a period of 30 days.
- Costs of the application to be in the cause.
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 Case 903 of 2009
IN THE MATTER OF RANGECHEM PHARMACEUTICALS LIMITED
AND
IN THE MATTER OF AN APPLICATION FOR EXTENSION OF TIME FOR THE REGISTRATION OF A DEBENTURE OVER ALL THE GOODWILL, ASSETS AND UNDERTAKINGS OF RANGECHEM PHARMACEUTICALS LIMITED
COMMERCIAL BANK OF AFRICA LIMITED….….APPLICANT
RULING
This application has been brought by way of notice of motion under Section 102 of the Companies Act, Rule 8(b) of the Companies (High Court Rules), Section 3A of the Civil Procedure Act and all other enabling provisions of the law. It seeks the following orders.
1. THAT this court be pleased to extend time for the registration of a charge over Land Reference Number 209/11011/6 in the names of RANGECHEM PHARMACEUTICALS LIMITED.
2. THAT the costs of the application be in the cause.
The application is premised on three grounds on the face of the application as follows:
a)The omission to register the charges within the time prescribed in law was due to the delay in payment of stamp duty and stamping of the charges.
b)The registration of the charges is necessary so as to grant them validity in favour of the applicant herein.
c)The applicant stands to suffer great prejudice if this application is not granted.
During the hearing of the application, Mr. Makori, for the applicant submitted that the principal amount of Kshs. 25,000,000/- has already been disbursed to Rangechem Phamaceuticals Limited. However, the charge has not been registered as required by law since there was a delay of payment of stamp duty and stamping of the charge. The learned counsel also submitted that the applicant will suffer great loss and will be exposed. In conclusion, he acknowledged the fact that they can only register the charge with the leave of the court. He also submitted that the application is supported by the affidavit of Pamela Ager.
After carefully considering the application together with the annextures, I hereby extend the time for the registration of a charge over Land Reference No. 209/11011/6 in the names of RANGECHEM PHARMACEUTICALS LIMITED for a period of 30 days. The same is in conformity with section 102 of the Companies Act, Rule 8(b) of the Companies (High Court Rules). Significantly, none of the parties will be affected adversely by the order of the court.
MUGA APONDI
JUDGE
Ruling read, signed and delivered in open court in the presence of:
Charagu - Applicant’s Counsel
MUGA APONDI
JUDGE
26TH NOVEMBER, 2009