[2020] KEHC 4817 (KLR)
The court found that the applicant provided a reasonable explanation for the delay in registering the charges, specifically that the closure of the Land Registries due to the COVID-19 pandemic made it impossible to transact. The court was satisfied that the delay was not deliberate but was caused by circumstances...
Source-derived case information.
- Citation
- [2020] KEHC 4817 (KLR)
- Parties
- Applicant: Sidian Bank Limited; Respondent: Registrar of Companies
- Court
- High Court
- Court Station
- High Court at Nakuru
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application 69 of 2020
- Procedural Posture
- Miscellaneous Application / Ruling on Ex Parte Notice of Motion to Enlarge Time for Registration of Charges
- Outcome
- application allowed
- Judges
- NA Matheka
- Legal Topics
- Registration of Charges, Extension of Time, Companies Registry Procedure, Covid19 Related Delay
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Sidian Bank Limited
Applicant
Registrar of Companies
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Ex Parte Notice of Motion to Enlarge Time for Registration of Charges
Legal Issues
- 1 Whether the applicant has provided sufficient cause for the enlargement of time to register third party legal charges at the Companies Registry.
- 2 Whether the delay in registration was accidental or due to reasonable cause as required under Section 888 of the Companies Act.
Ratio Decidendi
The court found that the applicant provided a reasonable explanation for the delay in registering the charges, specifically that the closure of the Land Registries due to the COVID-19 pandemic made it impossible to transact. The court was satisfied that the delay was not deliberate but was caused by circumstances beyond the applicant's control. Applying Section 888 of the Companies Act, the court exercised its discretion to enlarge the time for registration of the charges, finding that the statutory requirements for such an extension had been met. The court therefore allowed the application and ordered that the charges be registered within thirty days.
Court Disposition
application allowed
Orders
- Time for registration of the third party legal charges over Gilgil/Gilgil Block 1/2697 (Kekopey) is enlarged; the charges to be registered within thirty (30) days of this ruling.
- No orders as to costs.
Full Case Text
Judgment text and source record
21 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAKURU
MISCELLANEOUS APPLICATION NUMBER 69 OF 2020
SIDIAN BANK LIMITED..................................................................APPLICANT
VERSUS
REGISTRAR OF COMPANIES..................................................RESPONDENT
RULING
What is before me is the exparte Notice of Motion dated 8th June 2020 which was placed before me on 16th June 2020. It is accompanied by the Certificate of Urgency bearing same date of Felix Ochieng Orege Advocate, and the Supporting Affidavit sworn by the same Advocate on the same date.
The Notice of Motion is premised on Section 888 of the Companies Act, 2015, Section 3A of the Civil Procedure Act and all the enabling provisions of the law.
Counsel also relied on Misc. Civil Cause number 143/2017 Faulu Micro Finance Limited[2017] eKLR.
The application seeks the order that, the court be pleased to;
Enlarge time for registration of third party legal charges over Gilgil/Gilgil Block 1/2697 (Kekopey) dated 27th December, 2019 and registered on 13th March 2020 registered in the name of Bertrand Lubanga Ngaywa (the chargor) at the Companies Registry in favour of Sidian Bank Limited which charges had been registered at the Lands Registry only released on 7th February 2020 and 26th May 2020 respectively but their registration at the companies registry has to be processed at the same time.
In arguing the application Mr. Orege submitted that the delay to register the charges was not deliberate but was as a result of the closure of the Land Registries due to the COVID 19 pandemic. He urged the court to allow the application, enlarge time for the applicant, to ward off litigation that may come out of the delay.
Under Section 888 of the Companies Act, the applicant is required to satisfy the court that the delay (being a failure/omission/misstatement) was accidental due to inadvertence or some other reasonable cause, among other grounds.
In this case the applicant has given a reasonable explanation, as the closure of the Land Registries made it impossible to transact. I find that the explanation given is reasonable.
I allow the application and extend time as requested. The charges be registered within thirty (30) days hereof. No orders as to costs.
Dated this 18th June 2020to be transmitted by email to the applicant by the Deputy Registrar.
Mumbua T Matheka
Judge
18th June 2020