Clarity Telecom Lyd v Megahey & Anor [2022] NICh 21 (06 January 2022)

Clarity Telecom Lyd v Megahey & Anor [2022] NICh 21 (06 January 2022)

Although there is reason to believe Clarity Telecom Limited will be unable to pay the first respondent’s costs if ordered to do so, it is not just to order security for costs in this case due to the tactical nature of the application, delay in bringing it, and the petitioner’s strong prospects of success in the winding-up petition.

Citation
[2022] NICh 21
Parties
Petitioner: Clarity Telecom Limited; First Respondent: John Britton Megahey; Second Respondent: Barclay Telecom Limited
Jurisdiction
Northern Ireland
Judgment Date
06 January 2022
Procedural Posture
Application for Security for Costs in Winding Up Petition / Interlocutory
Outcome
application for security for costs refused
Legal Topics
Security for Costs, Winding Up Petition, Shareholder Disputes, Just and Equitable Winding Up, Deadlock, Derivative Action
Company Law Insolvency Law Civil Procedure Security for Costs Winding Up Petition Shareholder Disputes Just and Equitable Winding Up Deadlock +1 more

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Parties

Clarity Telecom Limited

Petitioner

John Britton Megahey

First Respondent

Barclay Telecom Limited

Second Respondent

Procedural Posture

Application for Security for Costs in Winding Up Petition / Interlocutory

Legal Issues

  1. 1 Whether there is reason to believe Clarity Telecom Limited will be unable to pay the first respondent’s costs if ordered to do so
  2. 2 Whether it is just to order security for costs in the circumstances of the case
  3. 3 What amount and terms of security would be appropriate if ordered

Ratio Decidendi

Although there is reason to believe Clarity Telecom Limited will be unable to pay the first respondent’s costs if ordered to do so, it is not just to order security for costs in this case due to the tactical nature of the application, delay in bringing it, and the petitioner’s strong prospects of success in the winding-up petition.

Court Disposition

application for security for costs refused

Orders

  • first respondent’s application for security for costs is refused