Jageev Pty Ltd v Deane, Francis Mervyn [1998] FCA 1505

Jageev Pty Ltd v Deane, Francis Mervyn [1998] FCA 1505

In the absence of financial evidence from the Company, and having regard to its unpaid liabilities to Mr Deane, failures to comply with statutory demands, deemed insolvency, pending winding up application, possible liabilities to the State Bank, and failure to answer a notice to produce and subpoena for financial information, the Court was entitled to infer that Jageev Pty Limited was not in a position to meet its debts as and when they fell due or pay costs if the appeal failed. Justice therefore required an order for security for costs of the appeal in the sum of $7,500, with the appeal stayed pending provision of security and dismissed if security was not furnished in time.

Jurisdiction
Australia
Judgment Date
18 September 1998
Procedural Posture
Application for Security for Costs in Connection With an Appeal to the Full Court of the Federal Court of Australia / Ex Tempore Reasons and Orders on Motion for Security for Costs
Outcome
Security for costs ordered; appeal stayed pending provision of security; appeal to be dismissed with costs if security is not furnished by 30 October 1998.
Legal Topics
['security for Costs' 'appeal Stay' 'statutory Demand' 'presumption of Insolvency' 'winding Up Application' 'failure to Produce Financial Documents']
['federal Civil Procedure' 'corporations Insolvency'] ['security for Costs' 'appeal Stay' 'statutory Demand' 'presumption of Insolvency' 'winding Up Application' 'failure to Produce Financial Documents']

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Procedural Posture

Application for Security for Costs in Connection With an Appeal to the Full Court of the Federal Court of Australia / Ex Tempore Reasons and Orders on Motion for Security for Costs

Legal Issues

  1. 1 ['Whether Jageev Pty Limited should be ordered to give security for costs of its appeal.' 'Whether the Court should infer that Jageev Pty Limited was not in a position to meet an order for costs if the appeal were dismissed.' 'What amount and timing of security should be ordered, and whether the appeal should be stayed or dismissed if security were not furnished.']

Ratio Decidendi

In the absence of financial evidence from the Company, and having regard to its unpaid liabilities to Mr Deane, failures to comply with statutory demands, deemed insolvency, pending winding up application, possible liabilities to the State Bank, and failure to answer a notice to produce and subpoena for financial information, the Court was entitled to infer that Jageev Pty Limited was not in a position to meet its debts as and when they fell due or pay costs if the appeal failed. Justice therefore required an order for security for costs of the appeal in the sum of $7,500, with the appeal stayed pending provision of security and dismissed if security was not furnished in time.

Court Disposition

Security for costs ordered; appeal stayed pending provision of security; appeal to be dismissed with costs if security is not furnished by 30 October 1998.

Orders

  • ['Jageev Pty Ltd furnish security to the satisfaction of the Registrar in the sum of $7,500 on or before 30 October 1998.' 'The appeal be stayed until the provision of such security.' 'If security is not furnished by 30 October 1998, the appeal be dismissed with costs.' 'Jageev Pty Ltd pay the costs of the motion of...