Advance Innovative Solutions Pty Limited (in liquidation) v X-Dem Group (Aust) Pty Ltd & Anor [2012] NSWSC 1112

Supreme Court New South Wales

Medium Neutral Citation: Advance Innovative Solutions Pty Limited (in liquidation) v X-Dem Group (Aust) Pty Ltd & Anor [2012] NSWSC 1112 Hearing dates: 3 September 2012 Decision date: 18 September 2012 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Plaintiff to provide security for Second Defendant's costs in two tranches. Plaintiff to comply with paragraph 7 of Notice to Produce issued by Second Defendant dated 26 July 2012 within 48 hours. Notice of Motion dated 8 August 2012 be otherwise dismissed. Plaintiff have leave to proceed against First Defendant in liquidation. Matter continue on pleadings and Plaintiff to serve any Amended Originating Process and Amended Statement of Claim on or before 5 August 2012. Matter listed for directions in Corporations List on 15 October 2012. No order as to costs of Notice of Motion dated 8 August 2012. Catchwords: PRACTICE AND PROCEDURE - Summary dismissal - Application for summary dismissal of proceedings - Whether proceedings frivolous or vexatious, or disclose no reasonable cause of action, or constitute an abuse of process - Whether issues raised in respect of proceedings better addressed by proceedings continuing on pleadings. COSTS - Security for costs - Alternative application for security for costs - Discretion of court whether to order security for costs - Strength and bona fides of company's case - Whether company's impecuniosity caused by applicant's conduct, whether security would stultify prosecution of a genuine claim, whether persons standing behind company are willing to provide security, whether public interest weighs against ordering security, whether particular discretionary matters relevant. Cases Cited: - Blackjack Executive Car Services Pty Ltd (in liq) v Koulax [2002] VSC 380 - BPM Pty Ltd v HPM Pty Ltd (1996) 131 FLR 339 - Brimson v Rocla Concrete Pipes Ltd [1982] 2 NSWLR 937 - Bryan E Fencott & Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497 - Burton v Shire of Bairnsdale [1908] HCA 57; (1908) 7 CLR 76 - Caruso Australia Pty Ltd v Portec (Australia) Pty Ltd (1984) 1 FCR 311; 8 ACLR 818 - Cox v Journeaux (No 2) [1935] HCA 48; (1935) 52 CLR 713 - Equity Access Ltd v Westpac Banking Corporation (1989) ATPR 40,972 - Fiduciary Ltd v Morningstar Research Pty Ltd [2004] NSWSC 664; (2004) 208 ALR 564 - Green (as liquidator of Arimco Mining Pty Ltd) v CGU Insurance Ltd [2008] NSWCA 148; (2008) 67 ACSR 105 - Health & Life Care Ltd v Price Waterhouse (1993) 11 ACSR 326; 11 ACLC 1110 - Home v Walsh [1978] VR 688; (1978) 3 ACLR 564; (1977-78) CLC 40-420 - Hu v PS Securities Pty Ltd [2011] NSWSC 303 - In the Matter of Octaviar Limited (recs and mgrs apptd) (in liq) [2012] NSWSC 1027 - KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 556 FCR 189; 13 ACLC 437 - Owners Strata Plan SP 69565 v Baseline Constructions Pty Ltd [2012] NSWSC 502 - Polstead Pty Ltd (in liq) v Shah [2009] NSWSC 560 - Re Kenross Homes Pty Ltd (in liq) [1994] 2 Qd R 137 - Re Octaviar Ltd (recs and mgrs apptd) (in liq) [2012] NSWSC 1027 - Re United English & Scottish Assurance Co; Ex parte Hawkins (1868) LR 3 Ch App 787 - Ryberg Telecommunications Pty Ltd (in liq) v Optus Mobile Pty Ltd [2011] NSWSC 1268 - Shalhoub Holdings Pty Ltd v Commonwealth Bank of Australia [2006] NSWSC 607 - Street v Luna Park Sydney Pty Ltd [2006] NSWSC 1317 - Swaby v Lift Capital Partners Pty Ltd [2009] FCA 749; (2009) 72 ACSR 627 - Vagrand Pty Ltd (in liq) v Fielding (1993) 41 FCR 550; 113 ALR 128 Texts Cited: - Corporations Act 2001 (Cth) ss 471B, 483, 1335 - Uniform Civil Procedure Rules 2005 (NSW) rr 13.4, 21.11, 42.21, 42.21(1)(d) Category: Interlocutory applications Parties: Advance Innovative Solutions Pty Limited (in liquidation) (Plaintiff/Respondent) X-Dem Group (Aust) Pty Limited (First Defendant) Mirna Hijazi (Second Defendant/Applicant) Hassan Sankari (Third Defendant) Representation: Counsel: T. Ferrick (sol.) (Plaintiff/Respondent) D. Farrar (sol.) (Second Defendant/Applicant) Solicitors: Frontier Law (Plaintiff/Respondent) Farrar Lawyers (Second Defendant/Applicant) File Number(s): 12/73468