MHG PLASTIC INDUSTRIES PTY LTD.APPLICANT...AND:.QUALITY ASSURANCE SERVICES PTY LIMITED.FIRST RESPONDENT..ROADS & TRAFF

FEDERAL COURT OF AUSTRALIA

MHG Plastic Industries Pty Ltd v Quality Assurance Services Pty Limited [2002] FCA 821 PRACTICE & PROCEDURE – Applications for security for costs – whether respondents at risk of costs orders not being met – whether discretion to order security should be exercised in favour of respondents.

Trade Practices Act 1974 (Cth), s 65C(1)(a) Corporations Act 2001 (Cth), s 1335 Federal Court of Australia Act 1976 (Cth), s 56 Corporations Law, s 436A Bell Wholesale Co Ltd v Gates Export Corporation (1984) 2 FCR 1, cited. Beach Petroleum NL v Johnson (1992) 10 ACLC 525, followed. Equity Access Ltd v Westpac Banking Ltd [1989] ATPR 40-972, followed. P S Chellaram & Co Ltd v China Ocean Shipping Co (1991) 102 ALR 321, cited. BPM Pty Ltd v HPM Pty Ltd (1996) 14 ACLC 857, followed. Reches v Tadiran (1998) 85 FCR 514, cited. Rosenfield Nominees Pty Ltd v Bain & Co (1988) 14 ACLR 467, cited. Crypta Fuels Pty Ltd v Svelte Corporation Pty Ltd (1995) 19 ACSR 68, cited. MHG PLASTIC INDUSTRIES PTY LTD v QUALITY ASSURANCE SERVICES PTY LIMITED & ANOR N 390 OF 2001 SACKVILLE J SYDNEY 28 JUNE 2002

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 390 OF 2001

BETWEEN: MHG PLASTIC INDUSTRIES PTY LTD

APPLICANT

AND: QUALITY ASSURANCE SERVICES PTY LIMITED

FIRST RESPONDENT

ROADS & TRAFFIC AUTHORITY OF NEW SOUTH WALES

SECOND RESPONDENT

JUDGE: SACKVILLE J

DATE OF ORDER: 28 JUNE 2002

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The applicant provide security for costs to the first respondent, in the form of a bank guarantee from an Australian trading bank in favour of the first respondent, or in such other form as may be approved by a Registrar of the Court, in the sum of $50,000.00. 2. The bank guarantee be provided within twenty-eight days. 3. If the applicant fails to provide security for costs in accordance with Order 1 within twenty-eight days, the proceedings against the first respondent be stayed. 4. Note that Order 1 is intended to provide interim security and that the first respondent is at liberty to apply for additional security, provided that no such application shall be made, except with the leave of the Court, until discovery by the applicant and the first respondent has been completed and inspection has taken place. 5. Liberty to apply on 72 hours notice. 6. The applicant pay the first respondent's costs of the motion for security filed on 15 February 2002. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.