[2009] UGHC 10
The court found that the failure to register the mortgage charge within the statutory period was an innocent inadvertence and that granting an extension would not prejudice any party, including shareholders or creditors. The statutory framework under the Companies Act allows the court to extend time for registration...
Source-derived case information.
- Citation
- [2009] UGHC 10
- Parties
- Applicant: Standard Chartered Bank Uganda Limited; Respondent: Pioneer Construction (U) Limited
- Court
- High Court of Uganda
- Jurisdiction
- Uganda
- Case Number
- Misc. Companies Cause No. 49 of 2008
- Procedural Posture
- Miscellaneous Companies Cause / Ruling
- Outcome
- application_granted
- Legal Topics
- Registration of Charges, Mortgage Registration, Companies Act Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Standard Chartered Bank Uganda Limited
Applicant
Pioneer Construction (U) Limited
Respondent
Procedural Posture
Miscellaneous Companies Cause / Ruling
Legal Issues
- 1 Whether the court should extend time for registration of a mortgage charge under the Companies Act.
- 2 Whether failure to register the charge within the statutory period prejudices any party.
Ratio Decidendi
The court found that the failure to register the mortgage charge within the statutory period was an innocent inadvertence and that granting an extension would not prejudice any party, including shareholders or creditors. The statutory framework under the Companies Act allows the court to extend time for registration of charges. The application was therefore granted, permitting registration of the charge within 42 days from the date of the ruling.
Court Disposition
application_granted
Orders
- The applicant is granted extension of time to register the mortgage/charge.
- The charge in question shall be registered within 42 days from the date of this ruling.
Full Case Text
Judgment text and source record
2 paragraphs
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\par }{\insrsid14184588\charrsid10292119 IN THE HIGH COURT OF UGANDA AT KAMPALA \par \par }{\b\insrsid14184588\charrsid10292119 MISCELLANEOUS COMPANIES CAUSE NO 49 OF 2008 \par }{\insrsid14184588\charrsid10292119 IN THE MATTER OF }{\b\insrsid14184588\charrsid10292119 PIONEER CONSTRUCTION (U) LIMITED \par }{\insrsid14184588\charrsid10292119 AND \par IN THE MATTER OF THE COMPANIES ACT CAP.110 \par AND \par IN THE MATTER OF AN APPLICATION BY }{\b\insrsid14184588\charrsid10292119 STANDARD CHARTERED BANK \par }{\insrsid14184588\charrsid10292119 UGANDA LIMITED TO EXTEND TIME }{\b\insrsid14184588\charrsid10292119 WITHIN WHICH TO REGISTRER THE PARTICULARS OF A CHARGE}{\insrsid2192486\charrsid10292119 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10292119 {\insrsid2192486\charrsid10292119 \par }{\insrsid14363260\charrsid10292119 \par }{\b\insrsid2192486\charrsid10292119 BEFORE: HON. JUSTICE J. P. M TABARO \par }{\insrsid2192486\charrsid10292119 \par \par }{\b\insrsid2192486\charrsid10292119 RULING \par }{\insrsid2192486\charrsid10292119 \par }{\insrsid14363260\charrsid10292119 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10292119 {\insrsid2192486\charrsid10292119 This morning Counsel for the applicant Ms. Aisha Naiga urged an application for extension of time within which to register a mortgage executed in farm of the applicant Ms Standard Chartered (Uganda) Ltd on 23-9-2008. \par }{\insrsid14363260\charrsid10292119 \par It would appear the mortgage was registered in the Land Registry on 17-10-2008, but has never been registered with the Registrar of Companies. Regist ration of the charge is a legal requirement under S.96 of the Companies Act (Cap 110 Laws of Uganda) within 42 days from the date of its creation. \par \par Under S.102 of the Companies Act court has power to extend the time for registration charges, on such terms and conditions as Court may prescribe. \par \par From the submissions made by the applicants Counsel, Ms Naiga, and the affidavit in support it seems fairly clear that extension of the time for registration of the mortgage will not prejudice anyone \endash not the shareh olders or creditors to the company or creditors to the applicant bank. The application is granted as the mission to register the mortgage/charge, appears to have been an innocent inadvertence. The charge in question shall be registered within 42 days fr om today. \par \par The application is ex parte and hence the order for costs does not arise since the matter is not contested. \par \par }{\b\insrsid14363260\charrsid10292119 J. P. M. Tabaro \par Judge \par }{\b\insrsid12866851\charrsid10292119 \par }{\insrsid12866851\charrsid10292119 In the afternoon \par Applicant not present \par Ms B. Ntambirweki for applicant \par Ruling delivered. \par \par \par }{\b\insrsid12866851\charrsid10292119 J. P. M. Tabaro \par Judge \par 28-1-2009 \par }}