Suchand Pty Ltd v Johnathon Kingsley Colbran & Richard Stone as Receivers & Managers of Suchand Pty Ltd [2024] NSWSC 201

Supreme Court New South Wales

Medium Neutral Citation: Suchand Pty Ltd v Johnathon Kingsley Colbran & Richard Stone as Receivers & Managers of Suchand Pty Ltd [2024] NSWSC 201 Hearing dates: 23 February; 4 March 2024 Decision date: 04 March 2024 Jurisdiction: Equity Before: Kunc J Decision: Security for costs ordered Catchwords: COSTS — Security for costs — Relevant factors — No issue of principle Legislation Cited: Corporations Act 2001 (Cth) s 1335 Uniform Civil Procedure Rules 2005 (NSW) Pt 42, r 42.1 Cases Cited: Elip Pty Ltd v Arch Finance Pty Ltd [2020] NSWSC 752 Vintage Marine Art Pty Ltd v Henderson & Cremer (No 2) [2019] NSWCA 252 Category: Procedural rulings Parties: Suchand Pty Ltd (Plaintiff) Johnathon Kingsley Colbran & Richard Stone as Receivers & Managers of Suchand Pty Ltd (First Defendant) Robtamy Pty Ltd (Second Defendant) Representation: Counsel: BK Nolan (Plaintiff) J Hart (First Defendant) GM McGrath (Second Defendant)

Solicitors: Kirath Chand Ramrakha (Plaintiff) Dentons (First Defendant) D'Agostino Solicitors (Second Defendant) File Number(s): 2023/00017310

EX TEMPORE JUDGMENT (REVISED)

Summary 1. These reasons resolve two applications for security for costs. 2. The plaintiff (Suchand) was the lessee and operator of a Motel in Cooma. The second defendant (Robtamy Pty Ltd) was Suchand's landlord of the premises on which the Motel was operated. The first defendants (Receivers) were appointed by the Commonwealth Bank of Australia (CBA) as a result of a dispute between CBA and Suchand over the circumstances in which Suchand acquired the lease of the Motel from its related company, Charles Stuart Motel Pty Ltd. 3. For the reasons which follow, the Court will order Suchand to provide security for the defendants' costs. Security should be provided in tranches to reflect the progress of the preparation of the proceedings. The parties will be given an opportunity to attempt to agree those stages and the quantum to be provided in each stage to give effect to these reasons. 4. Ms BK Nolan of Counsel appeared for Suchand. Mr J Hart of Counsel appeared for the Receivers and Mr GM McGrath of Counsel appeared for Robtamy.