Automated Summary
Key Facts
The court granted an application for a 40-day extension to register a charge and second charge on Land Reference Number 37/37 (Title Number I.R. 91371). Savings and Loan Kenya Limited (1st Applicant) and Kenya Commercial Bank Limited (2nd Applicant) sought the extension due to the Chargor's directors being abroad, causing the statutory 42-day registration period to lapse. The charges were dated 30 April 2008 (first charge) and 26 October 2009 (second charge), with Kshs. 71 million already disbursed by the applicants.
Issues
The court considered the application for an extension of time to register a charge and second charge under the Companies Act. The applicants argued that the delay in registration was due to the directors of the Chargor being out of the country, causing the statutory period to lapse. The court granted a 40-day extension for registration of the charges.
Holdings
The court granted the application to extend the time for registration under section 96 of the Companies Act for the charge and second charge by 40 days from the date of the order. This was due to the applicants' need for additional time to secure their interests, citing the Chargor's directors being out of the country and the statutory period of 42 days having lapsed upon their return.
Remedies
The court granted an extension of 40 days from the date of the order for the registration of the charge and second charge under Section 96 of the Companies Act. Additionally, the matter was certified as urgent to be heard ex parte.
Legal Principles
The court applied the Companies Act (Section 96) to grant an extension for registration of charges due to the directors' absence abroad, which caused a delay in compliance with the statutory 42-day registration period.
Cited Statute
- Companies (High Court) Rules L.N. 312/1964
- Companies Act Cap 486
Judge Name
Muga Apundi
Passage Text
- THAT the time for registration under section 96 of the Companies Act of the Charge and Second Charge particulars whereof are given herewith BE EXTENDED by 40 days from the date of the order to be made herein.
- After carefully considering the application together with the anenxtures, I hereby grant the same in terms of prayer no. 2. Specifically, I hereby direct that the time for registration under section 96 of the Companies Act of the charge and second charge whose particulars are given herewith, be extended by 40 days from today's date.
- During the hearing of the application, the applicant's counsel, Ms. Ogulla submitted that her client has already disbursed a total of Kshs. 71 million to the respondent pursuant to a charge dated 23rd October, 2008 and the second charge of 26th October, 2009. Further to the above, she also submitted that the applicants are in a precarious position as far as their security is concerned due to the non registration of the two charges. It is on that note that she has prayed for extension of time to register the charges. According to the learned counsel, the reason for the delay is that the Directors of the Chargor have been out of the country and only came back in January 2010. Unfortunately by that time thestatutory period of 42 days had already lapsed.