1. By an ex parte application dated 3rd March 2025, brought under sections 885 of the Companies Act 2015, GULF AFRICAN BANK LIMITED, hereinafter the applicant, seeks extension of time for thirty (30) days to allow for the registration of the Charge dated 19th February 2025 created by MOKKA CITY MIMITED in favour of the applicant.
2. The application is said to be based on the grounds on the face of the application. It is supported by the affidavit of NJUNG'E EVANSON NDUNG'U.
3. I have carefully perused and considered the application and note that the substratum of the application is the prayer for extension of time within which to register the charge dated 19th February 2025, created by MOKKA CITY MIMITED in favour of GULF AFRICAN BANK LIMITED, to secure a loan facility.
4. Section 888 of the Companies Act under which this application has been brought provides as follows; -
“888. Rectification of register of charges
(1) A company or interested person who claims that a failure to register a charge before the deadline for registration, or an omission or misstatement of a particular with respect to any such charge or in a memorandum of satisfaction or release –
(a) was accidental or due to inadvertence or to some other reasonable cause; or
(b) is not of a nature to prejudice the position of creditors or members of the company, may apply to the Court for an order under subsection (2).
(2) If, on the hearing of an application made under subsection (1), the Court is satisfied-
(a) that the failure, or the omission or misstatement-
(i) was accidental or due to inadvertence or to some other reasonable cause; or
(ii) is not of a nature to prejudice the position of creditors or members of the company; or
(b) that on other grounds it is just and equitable to grant relief, the Court may, subject to such conditions (if any) as it considers fair and reasonable, order the deadline for registration to be extended, or the omission or misstatement to be corrected.”
5. In Philip Chemwolo & another vs Augustine Kubede (1982-88) KLR 103 the court stated:
“Blunders will continue to be made from time to time and it does not follow that because a mistake has been made, that a party should suffer the penalty of not having his case heard on merit."
6. I have duly considered the dispositions together with the documentary evidence attached thereto in support of the application by the Applicant together with the applicable legal provisions and case law, I do find that the failure to register the Charge was not intentional and there is no evidence that the granting of the prayers sought will in any way prejudice the creditors or members of the Applicant Company.
7. Accordingly, I find that it is just and equitable to grant the relief sought by the Applicant. I grant the following orders:
i. The period of registration of the Company Charge dated 19th February 2025 created by MOKKA CITY LIMITED to secure loan facility from Gulf, African Bank Limited against property known as NAIROBI/BLOCK146/435/158 is hereby extended for a period of thirty (30) days from the date hereof.
ii. Once the Charge is so registered, that charge shall be deemed to have been filed with the Registrar of Companies in compliance with the Companies Act 2015.
iii. There shall be no orders as to costs.
iv. This file is closed.
8. It is so ordered.
SIGNED, DATED and DELIVERED IN VIRTUAL COURT THIS
14TH DAY OF APRIL, 2025
ADO MOSES
JUDGE