Iskandar & Natrabu v Merpati

In the Supreme Court of the Northern Territory of Australia, Freddie Iskandar and Natrabu (Aust) Tours & Travel Pty Ltd filed a case against Merpati Nusantara Airline. The respondents sought an order for security for costs in relation to an appeal lodged by the plaintiffs against the decision to dismiss the proceedings. The legal issue was whether the second plaintiff should provide security for costs as per Order 62.02(1)(b) of the Supreme Court Rules.

The court examined the circumstances under which the second plaintiff could be required to provide security for costs. The court found that the second plaintiff, a corporation, had insufficient assets in the Territory to pay the costs of the respondent. The court considered the four factors set out in Bryan E Fencott and Associates Pty Ltd v Eretta Pty Ltd to exercise its discretion. The court concluded that it would be appropriate to make an order for security for costs against the second plaintiff. The court assessed the costs at $43,725, including senior counsel, junior counsel, and solicitor costs, along with GST.

The court ordered that the second plaintiff pay security for costs in the sum of $43,725. The court also ordered that the proceeding as against the respondent be stayed until the security is given, and that the applicants pay the respondent’s costs of this application.