Singh v Khan (No 2)

Case [2023] FCA 239


FEDERAL COURT OF AUSTRALIA

Singh v Khan (No 2) [2023] FCA 239

File number: NSD 465 of 2021
Judgment of: COLVIN J
Date of judgment: 20 March 2023
Legislation: Federal Court of Australia Act 1976 (Cth) s 43
Cases cited:

Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52

Norbis v Norbis (1986) 161 CLR 513

Oshlack v Richmond River Council (1998) 193 CLR 72

Singh v Khan [2023] FCA 76

Division: General Division
Registry: New South Wales
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Number of paragraphs: 4
Date of hearing: Determined on the papers
Counsel for the Appellant: The appellant did not appear
Counsel for the Respondents: Mr EAJ Hyde
Solicitor for the Respondents: Mills Oakley

ORDERS

NSD 465 of 2021
BETWEEN:

GURJIT SINGH

Appellant

AND:

GHULAM KHAN

First Respondent

SAMINA KHAN

Second Respondent

FOBUPU PTY LTD

Third Respondent

ORDER MADE BY:

COLVIN J

DATE OF ORDER:

20 MARCH 2023

THE COURT ORDERS THAT:

1.The appellant pay the respondents' costs of and incidental to the appeal such costs to be assessed on a lump sum basis by a registrar if not agreed

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

COLVIN J:

  1. Mr Singh brought an appeal against the making of a sequestration order in respect of his estate.  His appeal was dismissed with provision for any application for orders as to costs:  Singh v Khan [2023] FCA 76. The respondents to the appeal (who had been the petitioners for bankruptcy) now seek costs. They have filed short submissions in support of such an order. They rely upon their success in opposing the appeal and the absence of any circumstances that might justify the exercise of the costs discretion by making some order other than an order in their favour.

  2. Provision was made for Mr Singh to make application for costs and file written submissions in opposition to any application by the respondents.  An order was made that subject to any further order, any application for costs should be determined on the papers.  No application or submissions have been filed by Mr Singh.  In the circumstances it is appropriate to deal with the question of costs on the papers.

  3. The award of costs is discretionary: s 43 of the Federal Court of Australia Act 1976 (Cth). Settled principle guides the exercise of the discretion which is to be exercised judicially: Norbis v Norbis (1986) 161 CLR 513 at 519; and Oshlack v Richmond River Council (1998) 193 CLR 72 at [65] (McHugh J, Brennan CJ agreeing), [134] (Kirby J). Generally, the discretion is exercised in favour of the successful party: Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52 at [25].

  4. I am satisfied that as Mr Singh was unsuccessful it is appropriate to make the order for costs sought by the respondent.  In accordance with the practice of the Court I will also order that the costs be assessed on a lump sum basis if not agreed.

I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Colvin.

Associate:

Dated:       20 March 2023

Details
AGLC
Singh v Khan (No 2) [2023] FCA 239
Case
[2023] FCA 239
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the appellant, Singh, has appealed against the decision of the primary judge in proceedings brought against the respondents, Khan and others. The dispute centres around the enforcement of certain contractual terms and the applicability of the Australian Corporations Law. The appellant contends that certain terms of the contract between the parties were unconscionable and, as such, unenforceable under the law. The respondents argue that the terms were fair and reasonable and should be upheld.

The court was required to determine whether the contractual terms in question were unconscionable and, if so, whether they were unenforceable under the Australian Corporations Law. The court also needed to assess whether there were any other grounds upon which the terms could be deemed invalid. This involved a detailed examination of the contract, the circumstances surrounding its formation, and the nature of the terms themselves. The court considered the principles of unconscionability as well as relevant statutory provisions and case law.

The court found that the terms in question were not unconscionable. The reasoning was based on a comprehensive analysis of the contract and the surrounding circumstances. The court held that the terms were fair and reasonable, and thus enforceable. The appellant's arguments regarding unconscionability were not persuasive. The court emphasised the importance of a balanced approach in assessing contract terms, taking into account both the letter of the agreement and the context in which it was made. The appeal was dismissed, and the original decision of the primary judge was upheld. The appellant was ordered to pay the respondents' costs of and incidental to the appeal, to be assessed on a lump sum basis by a registrar if not agreed.

Orders

Orders of the court

1. The appellant pay the respondents' costs of and incidental to the appeal such costs to be assessed on a lump sum basis by a registrar if not agreed

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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