Central Equipment Company Limited v Commissioner of Inland Revenue CA233/06

[2006] NZCA 518

IN THE COURT OF APPEAL OF NEW ZEALAND

CA233/06

BETWEEN  CENTRAL EQUIPMENT COMPANY LIMITED

Appellant

ANDTHE COMMISSIONER OF INLAND REVENUE

Respondent

Counsel:         C J Faloon, an office holder in the Appellant

J A L Oliver for Respondent

Judgment:      12 December 2006

JUDGMENT OF CHAMBERS J

The application to review the decision of the registrar declining to dispense with security for costs is dismissed.  Payment of security in the sum of $4,740 must be

made on or before 24 January 2007.

REASONS

[1]      Mr C J Faloon, who variously describes himself as a “controlling person” of the appellant and as “co-surety” and “co-trustee” with the appellant, applied for security for costs to be dispensed with.   The registrar declined that application on

27 November 2006.

[2]      Mr Faloon has sought a review of the registrar’s decision under r 7(2) of the

Court of Appeal (Civil) Rules 2005.  I have considered that application.  I did not find it necessary to call for further submissions from the Commissioner of Inland

CENTRAL EQUIPMENT COMPANY LTD V THE COMMISSIONER OF INLAND REVENUE CA CA233/06  12 December 2006

Revenue,   the   respondent.      Mr   Oliver   had   presented   submissions   for   the

Commissioner in respect of the original application to dispense with security.

[3]      Mr  Faloon  has  not  shown  the  registrar’s  decision  was  wrong.     His submissions in support of the application for review show a lack of understanding of the purpose of security.   Security is intended to protect the respondent should the appellant be unsuccessful on the appeal.  No satisfactory reasons have been provided as to why the Commissioner is not entitled to that standard protection in this case.

Solicitors:

Crown Law Office, Wellington