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ELCOtherNot stated (Notice of Motion dated 12/10/2020)· [2020] KEELC 981 (KLR)

In re Family Bank Limted [2020] KEELC 981 (KLR)

Environment and Land Court
19 October 2020
SOS. OKONG'O
333 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that only the High Court, not the Environment and Land Court, can extend the deadline for registering a charge under the Companies Act.

What this practically means

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Executive summary

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Family Bank Limited (the applicant) filed a Notice of Motion dated 12th October 2020 under Section 888 of the Companies Act No. 17 of 2015, seeking an extension of time by 30 days to register a charge dated 12th August 2020 granted by Reliable Realty Managers Ltd over L.R No. 13623/3 in the bank's favour. Before considering the merits, the court raised the question of its own jurisdiction. Section 888 of the Companies Act confers the power to extend the statutory time for registering charges on 'the court' without specifying which court is meant. The court applied Section 3 of the Act, which defines 'the court', unless some other court is specified, as the High Court. On that basis it found that the High Court alone has jurisdiction to grant extensions of time under Section 888. The court did not determine the application on its merits; instead it transferred the suit to the Commercial Division of the High Court at Milimani Law Courts for hearing and final determination, and directed that, given the urgency involved, the matter be placed before the Presiding Judge or Duty Judge of that Division as soon as possible for appropriate directions on the pending application. The judgment was delivered through Microsoft Teams on 19th October 2020, with Ms. Munyasia appearing for the applicant. No costs order was made and no authorities were cited.

Key legal issues

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01

Jurisdiction to extend time for registration of a charge under Section 888 of the Companies Act

Holding

Only the High Court has jurisdiction, since Section 3 of the Act defines 'the court' as the High Court where no other court is specified

Reasoning

Section 888 confers power to extend time on 'the court' without specifying which court. In the absence of specification, the definition in Section 3 of the Companies Act applies, which defines 'the court' as the High Court. The court therefore found it lacked jurisdiction and transferred the application to the High Court's Commercial Division rather than determine it on the merits.

p. 2

Legal principles established

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  • Where Section 888 of the Companies Act confers power on 'the court' without specifying which court, Section 3 of the Act applies, defining 'the court' as the High Court; jurisdiction to extend time for registration of charges therefore lies with the High Court

Court orders

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  1. 1.Transfer of the suit to the Commercial Division of the High Court at Milimani Law Courts for hearing and final determination
  2. 2.The matter to be placed before the Presiding Judge/Duty Judge of the Division as soon as possible for appropriate directions on the pending application

Authorities

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Legislation

  • Companies ActSection 888
  • Companies ActSection 3
Jurisdiction invoked
Section 888 of the Companies Act No. 17 of 2015 read with Section 3 (definition of 'the court' as the High Court)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "In re Family Bank Limted [2020] KEELC 981 (KLR)", Case Analysis (2020). Not stated (Notice of Motion dated 12/10/2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/981/eng@2020-10-19

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.