In the matter of Bean and Sprout Pty Ltd (admin apptd)

Bean and Sprout Pty Ltd, an applicant in liquidation, sought an order that its costs, including indemnity costs, be paid by the respondent, who had opposed the applicant’s application to appoint an administrator. The dispute centred on the entitlement of the applicant to indemnity costs under section 98 of the Civil Procedure Act 2005 (NSW). The legal issues before the court were whether the applicant had acted reasonably in bringing the proceedings and whether there was a reasonable prospect that the Court could have upheld the opposition advanced by the respondent. The court considered the principles governing indemnity costs, including the requirement that the applicant's conduct in bringing the proceedings be reasonable and that there be no reasonable prospect that the Court could have upheld the opposition.

The court found that the applicant had acted reasonably in bringing the proceedings as it had a legitimate interest in the outcome and the appointment of an administrator was in the best interest of the company's creditors. The court also found that there was no reasonable prospect that the Court could have upheld the opposition advanced by the respondent, as the respondent's arguments lacked merit and were not supported by evidence. The court concluded that the applicant had satisfied the criteria for indemnity costs under section 98 of the Civil Procedure Act 2005 (NSW). Therefore, the court ordered that the respondent pay the applicant's costs, including indemnity costs, on an indemnity basis. The court also noted that the amount of indemnity costs should be assessed by the Registrar if not agreed upon by the parties.