Infinity Distribution Ltd v The Khan Partnership LLP

The amount and potential recoverability of the premium for the deed of indemnity is not a relevant factor in determining the acceptability of security for costs. The deed of indemnity provided adequate security for TKP's costs, and the master's order was correct.

Parties: Claimant/respondent: Infinity Distribution Ltd (in administration); Defendant/appellant: The Khan Partnership LLP
Jurisdiction: England and Wales
Judgment Date: 26 June 2020
Procedural Posture: Civil Appeal / Appeal From Order on Security for Costs
Outcome: appeal dismissed
Legal Topics: Security for Costs, Costs Recovery, Deed of Indemnity, Administration of Insolvent Companies

Civil Procedure Security for Costs Costs Recovery Deed of Indemnity Administration of Insolvent Companies

Case Brief

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Parties

Infinity Distribution Ltd (in administration)

Claimant/respondent

The Khan Partnership LLP

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Order on Security for Costs

Legal Issues

1 Whether the amount and potential recoverability of the premium for a deed of indemnity is a relevant factor in determining the acceptability of security for costs
2 Whether the master erred in excluding the premium from consideration when approving the deed of indemnity as adequate security

Ratio Decidendi

Court Disposition

appeal dismissed

Orders

The master's order approving the deed of indemnity as adequate and acceptable security for costs is upheld.