In Re: Summerfruit (U) Ltd and Ors (Companies Cause No. 5 of 1995) [1995] UGHC 34 (4 October 1995)

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(}{\pntxta )}}\pard\plain \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6647916 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 THE REPUBLIC OF UGANDA \line IN THE HIGH COURT OF UGANDA AT KAMPAIIA \line COMPANIES }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 CAUSE }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 NO. }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 5/95 }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \insrsid6647916 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 IN THE MATTER OF SUMMERFRUIT}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 (U) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14110010 LIMI}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 TED IN RECEIVER}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 SHIP \line \emdash versus \emdash \line N THE MATTER OF AN APPLICATION BY CHRIS SSERUNKUMA AND \line CHRISTINE OKOT CHONO \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6647916 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 BEFORE}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16670562\charrsid6647916 : -}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 HON. MR. JUETIGE}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6647916 J. H. NTABGOBA_PRINCIFAL JUDGE \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6647916 {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6647916 RULIN}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 G}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1134315 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 Christine}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 Okot \emdash Chon and Chris Sserunkuma}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 were appointed by M/S Development Finance Company of Uganda Limited as receivers to }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 manage}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 the affairs of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 a debtor Company, M/S, Summerfrui}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 t (U)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 Ltd upon the latter Co}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 mpany\rquote s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 failure o pay money secured by a debenture }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 dated }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid6647916 31.10.00}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 .}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid13570815\charrsid1134315 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 Upon}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 their appointments, the receivers discovered that the debenture agr }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 eement had not been registered on time. Whereas S.96(1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 ) of the Companies Act provides that such a debenture and its }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 particulars}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 must be registered with the Registrar of Companies within 42 days of the date of its making, this Particular debenture made }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 on }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 31.10.90 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 was not registered until 9,4.91. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 If}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 the debenture is not registered within the period of 42 days it becomes}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 void as against the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 liquidator}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 (in this case, the receivers) and any creditor of the company under the receivership.}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 S. 102 of the Companies Act, however, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 provides a saving as follows:\emdash \par }\pard \ltrpar\s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid6647916 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 \'93}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 The court, on bei}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 ng satisfied that the omission }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 to register a charge (e.g. a debenture) wit}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 hin the time required by this A}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 ct or that the omission or mis\emdash statement of any particular with respe ct to any such charge or in a memorandum of satisfaction was accidental, or due to an inadvertence or to some other sufficient cause, or is not of a nature to prejudice the position of creditors or shareholders of the company, or that on other grounds it is just and equitable to grant relief, may, on application of the company or any person interested, arid on such terms and conditions as seem to the court just and }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 expedient}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 , order that trio time for registration shall be extended, r, as the case may be, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid1134315 that the omission }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 or mis \emdash statement }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid1134315 shall be rectified}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6647916 .\'94}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid1134315 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1134315 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 The two receivers have applied under S.352 of the Companies Act, and 3.102 of the Civil Procedure Act, as well as order 34A Rule 6(f) and (r) of the Civil Procedure Rules, for directions or orde}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 rs that: \emdash \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 1. Certificate No.664 issued by the Registrar of Companies }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 on }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 9.4.91 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 is conclusive}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 evidence that the requirements of Part IV of the Companies Act as to registration were complied with in spite of inaccuracies }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 in respect}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 of any particulars which may be discovered. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 2}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 . The late registration of the debenture (as a charge) does not make the same void }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 ab}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6647916 initio. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 \par 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 . Late or non\emdash registration of the charge does not prejudice any contract or obligation for the repayment of the money thereby }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 secured. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 4. The date of delivery of the debenture }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 (as a }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 charge) to the Registrar of Companies for registration or the date when the same was received by the Registrar of Companies for registration is not the date of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 registration of the debenture.

\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 5. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 The inadvertent omission to deliver the charge or deb}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 enture for registration within 4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 2 days after its creation should be rectified by }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 subsequent}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 registration and that the issuance of the certificate of registration by the Registrar be made valid notwithstandin}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 g the late registration. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 6. The applicants, as receivers of SUMMERFRUIT(U)LTD are entitled to seek relief from this court to get the necessary directions or declarations on matters arising in connection with the performance of their duties and functions o bring the sa me or to ensure that }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 they are in line with the law. \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 7. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 Costs of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 thi}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 s application be provided for. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 After reading the chamber }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 application}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 , the affidavi}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 t of Christine Okot\emdash Chono in sup}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 port}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 thereof, the debenture agreement, and upon hearing Mr. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 Ch}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 ristopher}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 B wanika, learned counsel for the applicant, it is clear that what is being sought in this application is an order rectifying the late registration and the Registrar\rquote s Certificate of registration issued }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid1134315 there for}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 . \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 The High Court may grant rectification on being satisfied that the omission to register within the time prescribed was accidental or due to inadvertence }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 or to some other }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 sufficient cause, or is not of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 a nature to prejudice the position of creditors or shareholders of the company, or that, on the grounds, it is just and equitable to g}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 rant reliefs\rquote The wording of S10}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 2 of the comp}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 anies Act, however, is not wide to cover }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 deletion}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 of the whole entry from the Register (Re: C,L Nye Ltd }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 (1971) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 ch. 4}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 22 at 47}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 4. and 476). }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 Nor}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 will the section app}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 ly if }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916 charge has actually been }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 registered out of time by virtue of a mista}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6647916\charrsid6647916 ke as to the date of creation. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 The court may extend the time for registration on such terms and conditions as seem to the Judge just and expedient. The Court is not precluded from exercis ing this power by the fact that the validity of the charge is being challeng}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8808363 ed in other proceedings. (Re: H}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 eatherstar Properties, Ltd (No.2) 96671. W. LR.99). The words \'93accidental or due to inadvertence\'94 have a very wide meaning (Re: Jackson and Company (1899}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid8808363 ) }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid8808363 1 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid8808363 Ch.48}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 ). In exercising this discretio}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8808363 nary power to extend or rectify,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 on term}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8808363 s, it has become the practice to i}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6647916 nsert in the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 order the following words}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 : -}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 \'93 This order to be without prejudice to the rights of parties acquired prior to the time when su}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8808363 ch debenture shall be actually }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 registered. }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 (See Re: Joplin Brewery, Co. [19}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 27}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 ] }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 1 Ch.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 79; Re: Spiral Globe, Co. [1902] 1}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid13570815\charrsid1134315 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8808363 Ch. 396 e.t.c.).

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 In the instant case, there is the period between the date of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid5322684 expiry}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 of the }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 42 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 days provided}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 in }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 S.96 (}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 1) of the Companies Act, and the registration and issuance of the certificate of the Registrar, on }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 9.4.91.}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid13570815\charrsid1134315 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 During that period some rights may have been acquired aga}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 inst M}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 /S. Summerfruit (U) Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 \rquote }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 s property by other parties, The }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid1134315 proviso,, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 as the United Kingdom Court of A}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 ppeal exp}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5322684 lained in Re: Ehrmam Bros. Ltd [}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5322684\charrsid5322684 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5322684 906]}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 2 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid5322684 Ch}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 .697, }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6952207 is merely}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid1134315 designed to protect rights acquired against }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6952207 the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6952207\charrsid6952207 property}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6952207 of the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6952207\charrsid6952207 Company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6952207 in the interval between the expiration }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6952207\charrsid6952207 of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid6952207 the twenty one days }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 (i.e. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 42 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 days}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 for Uganda) for }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815\charrsid1134315 registering and the extended time allowed by the order\emdash }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid6952207 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 I am satisfied that the duty to register }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 debenture and its particulars within 42 days of its creation fell upon the company that has appointed the applicants as receivers. They are therefore perfo rming their functions and duties as agents of the company. Any omission or error therefore could be visited on the company which is the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 charge}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 . However, I am satisfied that the error in registering the debenture late was not }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 deliberate}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 , more espec}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 ially, in view the affidavit of Christine Okot\emdash Och}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 ono which seems to }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 suggest that the debenture was }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 presented on time to the Registrar but the Registrar registered it late. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 This idea is conveyed in paragraph 5 of her affidavit in which she, in subparagraph (iii) she deponed that:\emdash }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 \par }\pard \ltrpar\s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid6952207 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 \'93the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 date o}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 f delivery of the charge to the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 Registrar for registration or the date when the same was received by the Registrar for registration is not the date of registrat}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 ion of the debenture or charge \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1134315 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 There is justification in this averment in view of the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 decision in the Charnley case [1924] I. K. B. 431. In that }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 case, though the Registrar had the means available to him to ascertain by careful inspection of the document of charge that the particulars subm itted by the chargee were incorrect in omitting reference to the movable chattels, there can be no doubt that the omission from the registration and certificate of the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid9598329 Registrar }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid13570815\charrsid9598329 were }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid9598329 directly}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 attributable to the careless error of the chargee. But that made no difference to the outcome, or to the effective conclusive validity of Certificate. In re D.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 L }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid6952207 Nye [1971]}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 I Ch. 442, at }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13570815\charrsid6952207 p.475, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 Russell, L.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid6952207 J. said}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 :\emdash \par }\pard \ltrpar\s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid6952207 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 \'93In }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 my}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 judgment, the certificate of the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207\charrsid1134315 R}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 egistrar }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 demonstrates that in law the Bank has a valid se}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 curity against the liquidator\'94}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6952207 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1134315 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 In other words, in re: C. L. Nye is a good authority for the legal proposition that the Registrar\rquote s certificate under S.96 of the Companies Act in the instant case was a rectification of the omission to register the debenture within the time prescribed by the law, namely, 42 days after the creation of the debenture. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 In any event, I am satisfied that the error in registering the debenture was not deliberate. Since also I am satisf}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 ied that it will not be in the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 interests of creditors t o validate the late registration but that such validation will do justice to all concerned and will not fetter the acts of the receivers in the execution of their functions, as such receivers I do validate the registration and declare also that the certif icate of the registrar shall be construed as if it was issued within the period of 42 days from 51,10.90 and that the registration of the debenture shall be deemed to have been made within the same period. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 This order, however, will be with}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329\charrsid1134315 out}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 p}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329\charrsid1134315 rejudice}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 to the rights of the parties which may have been acquired against Summerfruit (U}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 ) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 Ltd, during the period of omission to register i.e. from 1st No}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 vember 1990 to 8th April 1991. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 In the result, the orders sought in this application and enumerated in this ruling above are made. The costs of this application shall be a charge on the property of the company under rec}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 eivership. \par Order accordingly. \par }\pard \ltrpar\s15\qr \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid9598329 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 J. H. NTAGOB}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13570815\charrsid1134315 A \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid9598329 PRINCIPLE JUDGE}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13570815 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329\charrsid9598329 4/10/95}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 \par }\pard \ltrpar\s15\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid9598329 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 \par Mr. Mubiru Kalenge for the applicant \par Applicant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5322684 Okot-Chon}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 o present \par Mr. Odongo court clerk present \par Ruling read in open court \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329\charrsid9598329 4/10/95}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329\charrsid9598329 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9598329\charrsid1134315 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