Central Equipment Company Ltd v Commissioner of Inland Revenue

[2008] NZCA 42

IN THE COURT OF APPEAL OF NEW ZEALAND

CA233/06

BETWEENCENTRAL 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 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