Barodawala (in the Matter Of Sujeetha Perinparajah)

This matter concerned an application by Mr. Barodawala, the respondent, for an order that the applicant, Ms. Sujeetha Perinparajah, provide security for costs in proceedings that she had commenced against him. The application was heard in the Federal Court of Australia by Judge Raphael.

The primary legal issue before the Court was whether Ms. Perinparajah, as the applicant, ought to be ordered to provide security for Mr. Barodawala's costs, pursuant to rule 24.01 of the Federal Court Rules 2011 (Cth). This rule allows for an order for security for costs where it appears to the Court that there is reason to believe that a party to the proceeding may be unable to pay the costs of the other party.

Judge Raphael considered the evidence presented by Mr. Barodawala regarding Ms. Perinparajah's financial position, including her declared insolvency and lack of assets. The Court applied the principles established in cases such as *O'Malley v O'Malley* and *Australian Competition and Consumer Commission v TPG Internet Pty Ltd*, which require the applicant for security to demonstrate a sufficient likelihood that the respondent will be unable to pay costs. The Court found that Ms. Perinparajah's financial circumstances, as evidenced by her insolvency and lack of assets, created a sufficient reason to believe she would be unable to pay Mr. Barodawala's costs if he were successful in defending the proceedings.

The Court ordered that Ms. Perinparajah provide security for Mr. Barodawala's costs in the sum of $20,000, to be paid into court within 28 days. The Court further ordered that if the security was not provided within that time, the applicant's originating application would be dismissed with costs.