ADVOKS GLOBAL · KENYA
Registration of Business Names Act
11. Disability of persons in default
Edition: 2022-12-31 · In force
11. Disability of persons in default
(1)Where any firm, individual or corporation required by this Act to furnish a statement of particulars or a notice of any change in the particulars specified in section 9 makes default in so doing, the rights of the defaulter under or arising out of any contract made or entered into by or on behalf of such defaulter in relation to the business in respect of the carrying on of which the statement of particulars or any change in particulars as aforesaid was required to be furnished shall not be enforceable by action or other legal proceedings whether in the business name or otherwise while such default continues:Provided that—(i)the defaulter may apply to the court for relief against the disability imposed by this section, and the court on being satisfied that the default was accidental or due to inadvertence or to some other sufficient cause, or that on other grounds it is just and equitable to grant relief, may grant such relief, either generally or as respects any particular contract, on such conditions, including the payment of the costs of the application by the defaulter, as the court may impose; so, however, that no such relief shall be given in respect of any contract if any party to the contract proves to the satisfaction of the court that, if this Act had been complied with, he would not have entered into the contract;(ii)nothing herein contained shall prejudice the rights of any other parties as against the defaulter in respect of any such contract as aforesaid;(iii)if any action or proceeding is commenced by any other party to a contract against the defaulter to enforce the rights of such party in respect of such contract, nothing herein contained shall preclude the defaulter from enforcing in that action or proceeding by way of counter-claim, set off or otherwise such rights as he may have against that party in respect of such contract.(2)In this section, "the court" means the High Court:Provided that, without prejudice to the power of the High Court to grant such relief as aforesaid, if any proceeding to enforce any contract is commenced by a defaulter in a subordinate court, the subordinate court may, as respects that contract, grant such relief as aforesaid.