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JudgmentMUGUNA ANDU WHOLESALER LIMITED VS EQUITY BANK KENYA LIMITED3 min read

MUGUNA ANDU WHOLESALER LIMITED VS EQUITY BANK KENYA LIMITED

High Court at Milimani High Court · · Njoroge Benjamin K.

1. The matter before the Court is the Ex-Parte Applicant’s application under a Certificate of Urgency by way of a Notice of Motion dated 10th September, 2026. It is brought pursuant to Order 51 (1) of the Civil Procedure Rules, Sections 878 and 888(1) and (2) of the Companies Act (No. 17 of 2015), Rules 3 and 8(b) of the Companies (High Court) Rules, and Section 3A of the Civil Procedure Act.
2. The Ex-Parte Applicant seeks the following orders:
1. THAT this Honourable Court be pleased to certify this Application as urgent and the same be heard on priority basis.
2. THAT this Honourable Court be pleased to extend the time within which to register the Second Further Charge dated 24th June, 2026 over property Title No. NGONG TOWNSHIP/ BLOCK 1/233 created by MUGUNA ANDU WHOLESALER LIMITED ("the Chargor") in favour of EQUITY BANK (KENYA) LIMITED, with the Registrar of Companies by a further thirty (30) days pursuant to the powers conferred on this Honourable Court by Section 888 and (2) of the Companies Act (No. 17 of 2015).
3. THAT the costs of this application be in the cause.
3. The application is premised on the Supporting Affidavit of Eunice Nyambura Maina, sworn on the 10th September, 2026. The deponent states that the Ex-Parte Applicant advanced the sum of Kshs.60,000,000/= to the Borrower, secured by the Second Further Charge dated 24th June, 2026. The documents were lodged at the Ngong Lands Registry for registration on 26th June, 2026, but registration was not completed until 26th July, 2026. Consequently, the advocates received the registered documents well outside the statutory thirty-day window required for registration at the Companies Registry.
4. Under Section 888 of the Companies Act, 2015, this Court is vested with the discretion to extend the time for registration if satisfied that the omission was accidental, due to inadvertence, or that it is just and equitable to grant relief. As established in In re Diamond Trust Bank Kenya Limited [2026] KEHC 4049 (KLR), delays resulting from protracted administrative processes at the Lands Registry that fall entirely beyond an applicant's control constitute sufficient inadvertence to warrant the extension of time.
5. Having reviewed the pleadings and the annexed documents, the Court is satisfied that the failure to register the charge within the prescribed period was not occasioned by negligence or deliberate delay, but by systemic administrative delays at the Ngong Lands Registry. Denying the extension would render the charge void and disproportionately prejudice the Ex-Parte Applicant, while granting it will not prejudice the substantive rights of the Borrower's shareholders or creditors.

Determination
6. Accordingly, the Court finds merit in the Ex-Parte Application by way of a Notice of Motion dated 10th September, 2026 and grants the prayers as sought as follows:
(a) THAT this Application is HEREBY certified as urgent and heard on a priority basis.
(b) THAT this Honourable Court HEREBY extends the time within which to register the Second Further Charge dated 24th June, 2026 over property Title No. NGONG TOWNSHIP/ BLOCK 1/233 created by MUGUNA ANDU WHOLESALER LIMITED in favour of EQUITY BANK (KENYA) LIMITED, with the Registrar of Companies by a further thirty (30) days from the date of this order.
(c) THAT the costs of this application be in the cause .
7. THAT this file is HEREBY marked as closed.
8. It is so ordered.

DATED, SIGNED AND DELIVERED AT MILIMANI THIS 17TH DAY OF SEPTEMBER, 2026
NJOROGE BENJAMIN K.
JUDGE
    MUGUNA ANDU WHOLESALER LIMITED VS EQUITY BANK KENYA LIMITED MUGUNA ANDU WHOLESALER LIMITED VS EQUITY BANK KENYA LIMITED