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Uganda Judgment

High Court of Uganda

In Re: The Companies Act Cap. 110 & In Re: An Application by Standard Chartered Bank Uganda Limited to extend the time within which to register Particulars of a Charge (Misc. Companies Cause No. 49 of 2008) (Misc. Companies Cause No. 49 of 2008) [2009] UGHC 10 (27 January 2009)

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01

Holding and result

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.
  • No order as to costs.

02

Material facts

Parties

Standard Chartered Bank Uganda Limited

Applicant Counsel: Ms. Aisha Naiga

Pioneer Construction (U) Limited

Respondent

03

Procedural history

  1. Posture

    Miscellaneous Companies Cause / Ruling

04

Questions and positions

Legal issues

Party arguments

Applicant
Counsel for the applicant submitted that the mortgage was executed on 23-9-2008 and registered in the Land Registry on 17-10-2008, but was not registered with the Registrar of Companies within the required 42 days. The omission was innocent and inadvertent. Extension of time will not prejudice shareholders, creditors of the company, or the applicant bank.

05

Court’s reasoning

  1. 01

    Section 96, Companies Act (Cap 110, Laws of Uganda)

    Registration of charges created by a company must be effected within 42 days from the date of creation.

06

Ratio, limits and disposition

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.

Obiter and limits

  • The application is ex parte and hence the order for costs does not arise since the matter is not contested.

Court disposition

application_granted

  • 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.
  • No order as to costs.

Source and reliance status

High Court of Uganda

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Judgment text

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Source document

High Court of Uganda

Judgment

[2009] UGHC 10

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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 }}

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Companies Act Cap 110, Laws of Uganda, Section 96

Legislation

Legislation referenced in the available case record.

Companies Act Cap 110, Laws of Uganda, Section 102

Legislation

Legislation referenced in the available case record.

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