Suchand Pty Ltd v Jonathon Kingsley Colbran and Richard Stone as Receivers and Managers of Suchand Pty Ltd [2024] NSWCA 250

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Suchand Pty Ltd v Jonathon Kingsley Colbran and Richard Stone as Receivers and Managers of Suchand Pty Ltd [2024] NSWCA 250 Hearing dates: 23 September 2024 Date of orders: 21 October 2024 Decision date: 21 October 2024 Before: Ward P at [1]; Mitchelmore JA at [9]; Stern JA at [10]. Decision: (1) On the proviso that Mr Singh provides a signed unconditional undertaking to the court to be liable for the respondents' costs of the proceedings, leave to appeal is granted. (2) The appeal is allowed. (3) Orders 1, 2, 4, 5 and 7-9 of the Orders of Kunc J of 25 March 2024 are set aside. (4) The respondents are to pay the applicant's costs of the appeal. Catchwords: COSTS – Security for costs – Relevant factors – Impecuniosity – risk of stultification – where director offers an undertaking as to costs – whether the primary judge erred in ordering security for costs Legislation Cited: Corporations Act 2001 (Cth), s 1335 Uniform Civil Procedure Rules 2005 (NSW) (UCPR), r 42.21 Cases Cited: Adam P. Brown Male Fashions Pty Ltd v Phillip Morris Inc (1981) 148 CLR 170; [1981] HCA 39 Aquatic Air Pty Ltd v Siewert [2016] NSWCA 130 Carolan v AMF Bowling Pty Ltd t/as Bennetts Green Bowl [1995] NSWCA 69 Cornelius v Global Medical Solutions Australia Ltd [2014] NSWCA 65 Elip Pty Ltd v Arch Finance Pty Ltd [2020] NSWSC 752 Epping Plaza Fresh Fruit & Vegetables Pty Ltd v Bevendale Pty Ltd [1999] 2 VR 191; [1999] VSCA 43 Erolen v Baulkham Hills Shire Council (1993) 10 ACSR 441 Gentry Bros Pty Ltd v Wilson Brown & Associates Pty Ltd & Ors (1992) 8 ACSR 405 House v The King (1936) 55 CLR 499 Idoport Pty Limited v National Australia Bank Limited [2001] NSWSC 744 Intercraft Cabinets Pty Ltd v Sampas Pty Ltd (1997) 18 WAR 306 Jazabas Pty Ltd v Haddad [2007] NSWCA 291; (2007) 65 ACSR 276 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 Li v State of New South Wales [2013] NSWCA 165 Live Board Holdings Ltd v Cody Live Pty Ltd [2017] NSWCA 302 Maritime Services Board of New South Wales v Citizens Airport Environment Association Inc (1992) 83 LGERA 107 Newtimber (Operations) Pty Ltd v Tarong Energy Corporation Ltd [2011] FCA 123 Prynew Pty Ltd v Nemeth [2010] NSWCA 94; (2010) 28 ACLC 10-026 Secretary, Department of Family and Community Services v Smith (2017) 95 NSWLR 597; [2017] NSWCA 206 The Age Company Ltd v Liu (2013) 82 NSWLR 268; [2013] NSWCA 26 Treadtel International Pty Ltd v Cocco [2016] NSWCA 360; (2016) 316 FLR 318 Treloar Constructions Pty Limited v McMillan [2016] NSWCA 302 Vintage Marine Art Pty Ltd v Henderson & Cremer (No 2) [2019] NSWCA 252 Wollongong City Council v Legal Business Centre Pty Limited [2012] NSWCA 245 Yandil Holdings Pty Ltd v Insurance Co of North America (1985) 3 ACLC 542 Texts Cited: J Edelman, McGregor on Damages (21st ed, 2021, Sweet & Maxwell) Category: Principal judgment Parties: Suchand Pty Ltd (Applicant) Jonathon Kingsley Colbran & Richard Stone as Receivers & Managers of Suchand Pty Ltd (First Respondents) Robtamy Pty Ltd (Second Respondent) Representation: Counsel: BK Nolan (Applicant) J Raftery and J Hart (First Respondents) GM McGrath (Second Respondent)