Lloyd v Veterinary Surgeons Investigating Committee

In *Lloyd v Veterinary Surgeons Investigating Committee*, the applicant, a company in liquidation, sought to appeal a decision. The respondent, the Veterinary Surgeons Investigating Committee, applied for security for costs against the applicant. The appeal was heard by Mason P in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the applicant, being a company in liquidation, was required to provide security for costs under section 1335(1) of the *Corporations Act 2001* (Cth) in the context of an appeal. This also involved determining whether the Supreme Court Rules, specifically Part 51 rule 16, which grants the court power to order security for costs, was engaged and whether special circumstances existed to warrant such an order, considering factors such as the applicant's impecuniosity, the presence of a litigation funder, and the solvency of a co-appellant.

Mason P considered the application of section 1335(1) of the *Corporations Act 2001* to appeals, noting that the provision applies to "any proceedings" and that an appeal is a proceeding. His Honour found that the mere fact of impecuniosity, even in the context of a company in liquidation, did not automatically necessitate an order for security for costs, particularly where a litigation funder was involved. The Court also considered the potential for costs to be ordered against both appellants and the delay in the application. Ultimately, Mason P exercised his discretion to refuse the application for security for costs.

The application for security for costs was dismissed, and the respondent was awarded its costs.