In the matter of Hydrodec Group Plc (No 2)

Hydrodec Group Plc (No 2) involved a dispute regarding the costs of an unsuccessful application for the recognition of a moratorium under the UK Insolvency Act 1986 as foreign main proceedings under the Model Law on Cross-Border Insolvency. The parties included Hydrodec Group Plc, the applicant, and joint monitors appointed to the company. The application was heard in the Supreme Court of Victoria, Australia.

The legal issues before the court encompassed whether the joint monitors should be held jointly and severally liable with the company for the costs incurred due to the unsuccessful application. Additionally, the court had to consider whether the estimated costs were calculated on a fair, logical, and reasonable basis, which was pertinent to the applicant's request for a gross sum costs order.

In addressing the first issue, the court found that the joint monitors, appointed pursuant to the UK Insolvency Act, were indeed required to be jointly and severally liable with the company for the costs associated with the unsuccessful application. This decision was based on the principle that the joint monitors, as representatives of the company, should bear the financial burden of their actions in court. Regarding the second issue, the court determined that the estimated costs were not calculated in a fair, logical, and reasonable manner. Consequently, the application for a gross sum costs order was refused.

The court's final orders confirmed that the joint monitors and Hydrodec Group Plc were to be jointly and severally liable for the costs of the unsuccessful application. However, the application for a gross sum costs order was denied due to the inadequacy of the cost estimations.