Polstead Pty Ltd (in liq) v Sandip Shah [2009] NSWSC 560

New South Wales Supreme Court

CITATION : Polstead Pty Ltd (in liq) v Sandip Shah [2009] NSWSC 560

HEARING DATE(S) : 5 May 2009 JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Brereton J

EX TEMPORE JUDGMENT DATE : 5 May 2009

DECISION : Plaintiff to give security for defendants' costs in the amount of $150,000 and proceedings stayed until security provided.

CATCHWORDS : CORPORATIONS - Security for costs - Proceedings by company in liquidation - Whether reason to believe corporation will be unable to pay costs of defendant if defendant successful in its defence - Whether security should be ordered against company in liquidation - Discretionary considerations - Quantum of security - Held: Serious reason to believe plaintiff would be unable to pay defendants' costs - Discretionary considerations favour plaintiff providing security.

LEGISLATION CITED : (CTH) Corporations Act 2001 s 588G, s 588M, s 1355(1)

CATEGORY : Procedural and other rulings

Beach Petroleum NL v Johnson (1992) 7 ACSR 203 Equity Access Ltd v Westpac Banking Corporation (1989) ATPR 40-972 Ferrier and Knight v Civil Aviation Authority [1994] FCA 982 Green (as liquidator of Arimco Mining Pty Limited) v CGU Insurance Ltd [2008] NSWCA 148, (2008) 67 ACSR 105 CASES CITED : Hellen and Fordyce v Alex G Grivas Pty Limited [2002] NSWSC 1019 Hession v Century 21 South Pacific Ltd (1992) 28 NSWLR 120. Jonas v Rocklea Spinning Mills Pty Limited [2000] VSC 93 Standard Chartered Bank of Australia Limited v Antico & Ors (No 2) (1995) 38 NSWLR 290 Westralian Gold Mines Ltd v Westralian Minerals & Drilling Pty Ltd (in liq) (1986) 4 ACLC 167