Suchand Pty Ltd v Jonathon Kingsley Colbran and Richard Stone as Receivers and Managers of Suchand Pty Ltd

Suchand Pty Ltd (the applicant) sought leave to appeal from orders made by Kunc J in the Supreme Court of New South Wales, which had ordered the applicant to provide security for the costs of the respondents, Jonathon Kingsley Colbran and Richard Stone, who were acting as receivers and managers of the applicant. The dispute concerned the appropriateness of the primary judge's decision to order security for costs, particularly in light of an undertaking offered by a director of the applicant.

The Court of Appeal was required to determine whether the primary judge erred in ordering security for costs against the applicant. This involved considering the relevant factors for ordering security, including the impecuniosity of the applicant and the risk of stultification of the proceedings, as well as the effect of an undertaking offered by a director of the applicant in lieu of or in addition to security.

The Court of Appeal allowed the appeal, finding that the primary judge had erred in making the orders for security for costs. The court granted leave to appeal on the condition that Mr Singh, a director of the applicant, provided a signed unconditional undertaking to the court to be liable for the respondents’ costs. The court then set aside the primary judge's orders relating to security for costs and ordered that the respondents pay the applicant’s costs of the appeal.