rights of that 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
particulars were required to be furnished at any time while he is in default shall not be
enforceable by action or other legal proceeding whether in the business name or
otherwise:
Provided–
(a) 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 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 contracts, on condition of the costs of the application
being paid by the defaulter, unless the court otherwise orders, and on such
other conditions (if any) as the court may impose, but such relief shall not be
granted except on such service and on such publication of notice of the
application as the court may order, nor shall relief 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;
(b) nothing shall prejudice the rights of any other parties as against the defaulter in
respect of such contract as aforesaid;
(c) if any action or proceeding shall be commenced by any other party against the
defaulter to enforce the rights of such party in respect of such contract, nothing
shall preclude the defaulter from enforcing in that action or proceeding, by way
of counterclaim, set off or otherwise, such rights as he may have against that
party in respect of such contract.
(2) In this section the expression "court" means the High Court or a judge
thereof:
Provided that, without prejudice to the power of the High Court or a judge thereof
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.
16. Penalty for false statements If any statement required to be furnished under this
Act contains any matter which is false in any material particular to the knowledge of any
person signing it, that person shall, upon conviction, be liable to imprisonment of either
description for a term not exceeding twelve months, or to a fine not exceeding fifty
thousand shillings, or to both such fine and imprisonment.
17. Duty to furnish particulars to the Registrar (1) The Registrar may require any
person to furnish to him such particulars as appear to him necessary for the purpose of
ascertaining whether or not such person or the firm of which he is partner should be
registered under this Act, or an alteration made in the registered particulars, and may
also in the case of a corporation require the secretary or any other officer of a
corporation performing the duties of Secretary to furnish such particulars, and if any
person when so required fails to supply such particulars as it is in his power to give, or
furnishes particulars which are false in any material particular, he shall upon conviction
be liable to imprisonment for a term not exceeding one year or to a fine not exceeding
fifty thousand shillings or to both such fine and imprisonment.
(2) If from any information so furnished it appears to the Registrar that any firm or
person ought to be registered under this Act, or an alteration ought to be made in the
registered particulars, the Registrar may require the firm or person to furnish him with
the required particulars within such time as he may allow, but where any default under
this Act has been discovered from the information acquired under this section, no