Nivaran Herbal Private Ltd v Keenmind Pty Ltd [2002] FCA 680

Nivaran Herbal Private Ltd v Keenmind Pty Ltd [2002] FCA 680

Foreign corporate applicants and corporate cross-claimant without sufficient realisable assets in the jurisdiction are required to provide security for costs to the opposing parties. The specific quantum is adjusted in the court’s discretion based on evidence of assets and anticipated costs. Orders for security do not require investigation of merits unless a clear injustice or stifling of legitimate claims is established by evidence, which was not shown here.

Jurisdiction
Australia
Judgment Date
18 April 2002
Procedural Posture
Civil / Interlocutory Application, Orders for Security for Costs
Outcome
Security for costs ordered; specific quantum fixed; costs awarded to certain parties; special liberty to apply reserved.
Legal Topics
['security for Costs' 'foreign Corporations' 'costs Orders' 'corporate Insolvency' 'interlocutory Relief']
['civil Procedure'] ['security for Costs' 'foreign Corporations' 'costs Orders' 'corporate Insolvency' 'interlocutory Relief']

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Procedural Posture

Civil / Interlocutory Application, Orders for Security for Costs

Legal Issues

  1. 1 ['Whether the applicants (foreign corporations) should provide security for costs to the respondents; whether the first cross-claimant company should provide security for costs to the third and fourth cross-respondents; determination of appropriate quantum for security']

Ratio Decidendi

Foreign corporate applicants and corporate cross-claimant without sufficient realisable assets in the jurisdiction are required to provide security for costs to the opposing parties. The specific quantum is adjusted in the court’s discretion based on evidence of assets and anticipated costs. Orders for security do not require investigation of merits unless a clear injustice or stifling of legitimate claims is established by evidence, which was not shown here.

Court Disposition

Security for costs ordered; specific quantum fixed; costs awarded to certain parties; special liberty to apply reserved.

Orders

  • ['Within 21 days the applicants are to provide further security so as to bring the amount secured up to $50,000 in a manner satisfactory to the first and second respondents, or failing agreement, to the satisfaction of the Registrar.' "Costs of the respondents' notice of motion are the costs of the first and second...