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{\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 Civil Action No 212 of 2007 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 BETWEEN:}{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 STRATEGIC AIR SERVICES LIMITED}{ \lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 Suite 6, \par Colonial Plaza, Queens Road, Waqadra. \par Plaintiff \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 AND:}{\lang2057\langfe1033\langnp2057\insrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 AIRPORTS FIJI LIMITED}{\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 a duly incorporated \par company having its registered office at Nadi Airport, Nadi. \par First Defendant \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 ATTORNEY GENERAL OF FIJI}{\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 Suvavou House, Suva \par Second Defendant \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 AIR TRAFFIC MANAGEMENT ASSOCIATION OF FIJI}{ \lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par Nadi Airport, Nadi. \par Third Defendant \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 Counsel appearing: \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 For the Plaintiff:}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 Mr. Rabo Matabalavu}{ \lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 Of ESESIMARAM & CO. \par }{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }\trowd \irow0\irowband0\ts21\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt\brdrtbl \clbrdrl \brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2268\clshdrawnil \cellx2160\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth720\clshdrawnil \cellx2880\clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3780\clshdrawnil \cellx6660\pard\plain \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid11820946\yts21 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 For the Defendants: \cell }{\lang2057\langfe1033\langnp2057\insrsid2491913\charrsid3038209 1st:}{ \lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \cell }{\lang2057\langfe1033\langnp2057\insrsid2491913\charrsid3038209 Mr. Young of Young & Associates}{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \trowd \irow0\irowband0 \ts21\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2268\clshdrawnil \cellx2160\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth720\clshdrawnil \cellx2880\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3780\clshdrawnil \cellx6660\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid11820946\yts21 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \cell }{\lang2057\langfe1033\langnp2057\insrsid2491913\charrsid3038209 2nd:}{ \lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \cell Mr. Green for the Attorney General.\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \trowd \irow1\irowband1 \ts21\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2268\clshdrawnil \cellx2160\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth720\clshdrawnil \cellx2880\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3780\clshdrawnil \cellx6660\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid11820946\yts21 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \cell }{\lang2057\langfe1033\langnp2057\insrsid2491913\charrsid3038209 3rd.:}{ \lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \cell No appearance\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \trowd \irow2\irowband2\lastrow \ts21\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2268\clshdrawnil \cellx2160\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth720\clshdrawnil \cellx2880\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3780\clshdrawnil \cellx6660\row }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 Date of Hearing:}{\b\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 18th May 2010}{ \lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 Date of Order}{\b\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 :}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 10th August 2010}{\lang2057\langfe1033\langnp2057\insrsid3231349\charrsid3038209 \par \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 INTERLOCUTORY ORDER \par }{\b\lang2057\langfe1033\langnp2057\insrsid13785344\charrsid3038209 (}{\b\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 HEARING IN RESPECT OF AN APPLICATION FOR SECURITY FOR COSTS}{ \lang2057\langfe1033\langnp2057\insrsid13785344\charrsid3038209 )}{\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid11816514\charrsid3038209 The 1st }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 D}{\lang2057\langfe1033\langnp2057\insrsid11816514\charrsid3038209 efendant made an application for Security for Costs }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 from the Plaintiff Company }{\lang2057\langfe1033\langnp2057\insrsid11816514\charrsid3038209 by Summons dated 4th March 2010}{ \lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 . T}{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 he said application was}{\lang2057\langfe1033\langnp2057\insrsid11816514\charrsid3038209 supported by the affidavit of Davina Chan its Legal Advisor sworn on the 2nd}{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 March 2010 and by the attached annexure marked \'93DC1\'94.}{\lang2057\langfe1033\langnp2057\insrsid14698025 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 DC1 was the resignation letters of the former employees of the Plaintiff Company.}{\lang2057\langfe1033\langnp2057\insrsid15360901\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 The Plaintiff repli}{\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 ed the affidavit of Davina Chan}{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 with the affidavit of its Director}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 Luke Mataika}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 sworn on the 13th of}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 April 2010. }{ \lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 The Plaintiff counter}{\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 ed}{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 by claiming}{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 Security for costs from the 1st Defendant}{\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 , by the said affidavit,}{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 and sought $50,000/= to be deposited in court by the 1st D}{\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 efendant.}{ \lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid15360901\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 The 2nd Defendant}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 filed an affidavit }{ \lang2057\langfe1033\langnp2057\insrsid15360901\charrsid3038209 sworn on 8th April 2010,of Preetika Prasad, its Senior Legal Officer, }{\lang2057\langfe1033\langnp2057\insrsid14698025\charrsid3038209 in support of the 1st Defendants application}{ \lang2057\langfe1033\langnp2057\insrsid15360901\charrsid3038209 , and sought security for costs on behalf of the 2nd Defendant}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid15360901\charrsid3038209 in a sum of $ 28,000/= to be paid in to court. \par \par The Plaintiff filed an affidavit sworn on 27th April 2010, of Luke Mataika (its Director) with attached }{\lang2057\langfe1033\langnp2057\insrsid14437237\charrsid3038209 annexure \'93LM1\'94}{ \lang2057\langfe1033\langnp2057\insrsid15360901\charrsid3038209 , in reply to the affidavit of Preetika Prasad of the 2nd Defendant.}{\lang2057\langfe1033\langnp2057\insrsid15360901 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 LM1 is the Order of Justice Phillips in dismissing the Winding up Cause}{\lang2057\langfe1033\langnp2057\insrsid11626705\charrsid3038209 in respect o}{ \lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 f the Plaintiff Company in case (Lautoka High Court)}{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 No.9 of 2007.}{ \lang2057\langfe1033\langnp2057\insrsid14437237\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid2560543\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid7222113\charrsid3038209 In denying paragra ph 4 of the affidavit of Davina Chan of the 1st Defendant , the Plaintiffs Director Luke Mataika admits at paragraph 5(b) of his 1st affidavit , the transfer of its previous employees to the 1st Defendant.}{ \lang2057\langfe1033\langnp2057\insrsid6754657\charrsid3038209 At paragraph 5(a) of his affidavit Mr. Mataika con cedes that the Plaintiffs principal business was the provision of air traffic service and management for the 1st Defendant. With the loss of its employees the Plaintiff has obviously lost the ability to be in business. The number of such employees who hav e resigned in November 2006 according to \'93DC1\'94 amounts to over 60!}{\lang2057\langfe1033\langnp2057\insrsid7222113\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid14437237\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 \par The Plaintiff in its statement of claim states;}{\lang2057\langfe1033\langnp2057\insrsid395831 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 that an}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 Air Traffic Control and Management Services Agreement (ATCMS Agreement) was entered between Plaintiff and 1st Defendant on the 12th April 1999.}{\lang2057\langfe1033\langnp2057\insrsid395831 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 that the said agreement was for the Nadi Flight Information Region (Nadi FIR) and }{ \lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 Fiji\rquote s}{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 Local Air Space in accordance with ICAO International Standards and }{ \lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 Recommended}{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 Practices.,}{\lang2057\langfe1033\langnp2057\insrsid395831 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 that there was a }{\i\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 force majeure}{ \lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 clause in the said Agreement,}{\lang2057\langfe1033\langnp2057\insrsid395831 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 that the said }{\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 Agreement}{ \lang2057\langfe1033\langnp2057\insrsid395831\charrsid3038209 was for a period of 3years renewable for further 2 years,}{\lang2057\langfe1033\langnp2057\insrsid395831 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6964927\charrsid3038209 that the Plaintiff entered in to a Memorandum of \'93agreement\'94 sic(Memorandum of understanding- MOU) with the 1st Defendant on the 6th of March 2003, }{\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 whereby}{\lang2057\langfe1033\langnp2057\insrsid6964927\charrsid3038209 the ATCM Agreement was extended to 31 March 2003 and provided for finalization of negotiations for joint venture partnership,}{\lang2057\langfe1033\langnp2057\insrsid6964927 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6964927\charrsid3038209 that Plaintiff and 1st Defendant entered in to a Management Agreement on the 12th July 2003,}{\lang2057\langfe1033\langnp2057\insrsid6964927 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 7.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6964927\charrsid3038209 that on the 7th October 2003 Cabinet noted with approval the 10 year Management Agreement ,}{\lang2057\langfe1033\langnp2057\insrsid6964927 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 8.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6964927\charrsid3038209 that the Plaintiff and 3rd}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6964927\charrsid3038209 Defendant entered in to a Collective Agreement }{\lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 containing collective terms and conditions for employment by the Plaintiff of the members of the 3rd Defendant,}{ \lang2057\langfe1033\langnp2057\insrsid11287030 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 9.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 that between the 10th and 16th of November 2006 members of the 3rd Defendant trade union staged a strike and refused to report to work,}{ \lang2057\langfe1033\langnp2057\insrsid11287030 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid1723169\charrsid3038209 \hich\af0\dbch\af0\loch\f0 10.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid1723169\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid5601230\charrsid3038209 o}{\lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 n the 14th November the Minister of Labour }{ \lang2057\langfe1033\langnp2057\insrsid1723169\charrsid3038209 and Industrial Relations issued }{\lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 an order declaring such strike illegal and referred the dispute to arbitration and adjudication,}{\lang2057\langfe1033\langnp2057\insrsid11287030 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid11287030\charrsid3038209 \hich\af0\dbch\af0\loch\f0 11.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 that the 1st Defendant \'93stood idly by and allowed striking ATMAF ( 3RD}{\lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 Defendant) members}{ \lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 to break terms and conditions of employment}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 under the Collective Agreement, }{\lang2057\langfe1033\langnp2057\insrsid11287030 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid4223150\charrsid3038209 \hich\af0\dbch\af0\loch\f0 12.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 by letter of}{\lang2057\langfe1033\langnp2057\insrsid11287030\charrsid3038209 13TH December 2006 the 1st Defendant gave ultimatum to the Plaintiff to resolve its dispute with the 3rd Defendant so as to allow full resumption of subject air traffic services,}{\lang2057\langfe1033\langnp2057\insrsid11287030 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid2314418\charrsid3038209 \hich\af0\dbch\af0\loch\f0 13.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 that the 3rd Defendant notified/reminded the Ministry of Civil Aviation ,the 1st Defendant as well as the Ministry of Public enterprise}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 that it is unable to work with the Plaintiff}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 and further requested facilitation of its interest in carrying out same air traffic services \'93under the banner of Airports Fiji Limited\'94,}{\lang2057\langfe1033\langnp2057\insrsid2314418 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 14.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 that }{\lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 by letter of 15th}{ \lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 November 2006 the}{\lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 plaintiff gave the 1st Defendant notice of force majeure s ituation encountered with regard to events beyond its control regarding inter alia withdrawal by the 3rd Defendant of the employment of 39 of its members from the Plaintiff coupled with demand by the 3rd Defendant that the 1st Defendant offer employment t o such members immediately,}{\lang2057\langfe1033\langnp2057\insrsid2314418 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3038209 \hich\af0\dbch\af0\loch\f0 15.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 that }{\lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 by letter dated 15th November 2006 the 1st Defendant notified the P}{ \lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 laintiff of its rejection of }{\lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 Plaintiffs force majeure notice and furthermore gave the Plaintiff ultimatum to resolve its differences with the 3rd Defendant and restore subject air traffic services in the }{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 \'93}{ \lang2057\langfe1033\langnp2057\insrsid2314418\charrsid3038209 next 20 hours}{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 \rquote ,}{\lang2057\langfe1033\langnp2057\insrsid4404988 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid11147302\charrsid3038209 \hich\af0\dbch\af0\loch\f0 16.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 that }{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 by the letter of 16th November 2006 the 1st Defendant terminated the contract alleging repudiation of same contract by the Plaintiff,,}{\lang2057\langfe1033\langnp2057\insrsid4404988 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid11147302\charrsid3038209 \hich\af0\dbch\af0\loch\f0 17.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 that the \'93Plaintiff as it is entit led to do , opted to affirm the contract leaving the same open for performance by the parties\'94., \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 \par The aforesaid}{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 ,}{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 as it is the statement of facts as alleged by the Plaintiff in its statement of}{ \lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 claim, they}{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 may be taken as the background to be held against the Plaintiff. \par }{\lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 The Plaintiff set out several}{\lang2057\langfe1033\langnp2057\insrsid4223150\charrsid3038209 Causes of action against the aforesaid background alleging conspiracy by the Defendants against the Plaintiff. \par }{\lang2057\langfe1033\langnp2057\insrsid12064921\charrsid3038209 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid12064921\charrsid3038209 Applicable Law}{\b\lang2057\langfe1033\langnp2057\insrsid12064921\charrsid3038209 ; \par }{\lang2057\langfe1033\langnp2057\insrsid12064921\charrsid3038209 \par Section 402 of the Companies Act ( Cap 242- Fiji Laws), by virtue of which the 1st Defendants application is made, states;}{\lang2057\langfe1033\langnp2057\insrsid4404988\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid12064921\charrsid3038209 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid12064921\charrsid3038209 402. Where a limited company is plaintiff in any suit or other legal proceeding, any judge having jurisdiction in the matter may, if it appears by credible testimony that there is reason to believe that the company will be unable to pay the costs of the defendant if successful in his defense, require sufficient security to be given for those costs, and may stay all proceedings until t he security is given.}{\b\lang2057\langfe1033\langnp2057\insrsid12064921 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid15943167\charrsid3038209 (}{\lang2057\langfe1033\langnp2057\insrsid16519848\charrsid3038209 The corresponding section referred to in the British Companies Act is section 729.}{ \lang2057\langfe1033\langnp2057\insrsid15943167\charrsid3038209 )}{\lang2057\langfe1033\langnp2057\insrsid16519848\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid2712275 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 The 1st Defendants Counsel submitted the following authorities}{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 ; }{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 1. RE}{\b\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 UNISOFT GROUP LTD (NO.2) 1993 BCLC (Butterworths) 532, Chancery }{ \b\lang2057\langfe1033\langnp2057\insrsid12089552\charrsid3038209 Division (}{\b\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 Companies Court), 13th & 14th October 1992. (Sir Donald Nicholls)}{ \b\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\b\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 Held; that }{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 (1)}{\lang2057\langfe1033\langnp2057\insrsid12089552 }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 Section 726 of the Companies Act 1985 required the applicant to show that the company would be unable to, and not may be unable, to meet its debts when an order for costs was made against it. This question must be answered when the application was made to the court for an order , although the court could take in to account evidence as to what was expected happen in the interval before the costs order had to be satisfied. The phrase \'93if it appears by credible testimony that there is reason to believe\'94 did not water down the requirement that the court had to be satisfied on the evidence before it that the company would be unable to pay the costs of the Defendant.}{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 (2) The exercise of the courts discretion under s 726 did not involve a situation of all or nothing. The court had discretion to make an order for less than the anticipated costs\'85\'85\'85 }{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 (3) On the facts , there was evidence that the petitioner would not be in a position to satisfy a costs order that might be made against it and the court would order that the petitioner should provide security for costs b ut for a lesser sum than was sought by the respondents.}{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 At page 537 Sir Donald illuminatingly states thus; }{\b\ul\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 \'93 This would be yet another example of an ill which all too frequently bedevils the interlocutory stages of too many actions; one or the other or bot h parties spend time and money sniping at each other which would be much better spent on pressing ahead speedily and directly to the trial at which alone their substantive dispute can be effectually decided\'94.}{ \b\ul\lang2057\langfe1033\langnp2057\insrsid3038209 }{\b\ul\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 2.}{\b\lang2057\langfe1033\langnp2057\insrsid12089552 }{\b\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 HUTCHISON TELEPHONE UK LTD V ULTIMATE RESPO NSE LTD, 1993 BCLC (Butterworth\rquote s) 307 , Court of Appeal, Civil Division, 10th August 1992. }{\b\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 (Dillon and Bingham LJJ) }{ \lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 It was Held;\'85\'85.. \'93Section 726 was enacted expressly to enable security to be ordered for claims by companies in financial difficulties wher e there was reason to believe that the Company would be unable to pay the defendants costs if successful in his defence and it would not be an automatic answer to any such claim for security that there was a risk that the Company would be unable to pursue its claim and equally it did not automatically follow that there was any general principle that security should only be awarded if it was awarded to both sides\'94\'85..}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 \'93in the present case the defendants had , in addition to pleading a very full defence , plea ded an extensive counter claim in which the damages claimed appeared to exceed by a very substantial margin those claimed by the plaintiff\'85\'94}{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 Bingham LJ }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 , at page 318 observes; \'93 Section 726 expressly authorises orders against corporate parties who are by definition impecunious, and the necessary consequence of such an order may be that such a party is unable to pursue its claim. In a proper case that plainly is a consequence to be accepted\'94.}{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 3. In THE MATTER OF CANDLENUT INVESTMENTS LIMITED Vs. IAN MCLEOD, BRIAN WILLIS, JOHN GRAY AND YVONNE GRAY. }{\b\lang2057\langfe1033\langnp2057\insrsid9457264\charrsid3038209 NO.}{ \b\lang2057\langfe1033\langnp2057\insrsid9457264 }{\b\lang2057\langfe1033\langnp2057\insrsid9457264\charrsid3038209 HBF 014 0F 2006 RULING DATED 20TH OCTOBER 2006; }{\lang2057\langfe1033\langnp2057\insrsid9457264\charrsid3038209 this application for security for costs was made under Order 23 Rule(1)(a), and Finnigan J,}{\lang2057\langfe1033\langnp2057\insrsid9457264 }{\lang2057\langfe1033\langnp2057\insrsid9457264\charrsid3038209 ordered that the Petitioner shall pay into court the sum of $150,000/- as security for costs of the Respondents within 14 days after filing their summons for directions.}{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 The Plaintiffs Counsel submitted the following authorities;}{\b\ul\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 1. Fords Principles of Corporations Law (sixth Edition) at paragraph 308; \'93}{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 It is one th ing for a person voluntarily to run the risk of}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 loss by contracting with a limited Company but it is another for defendants to have the burden of litigation costs thrust upon them when sued by a company without assurance that , if the company ultimately }{ \lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 loses,}{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 it will be able to pay the successful defendants costs\'94.}{\lang2057\langfe1033\langnp2057\insrsid5902541 \par }{\b\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid12089552\charrsid3038209 2}{\lang2057\langfe1033\langnp2057\insrsid12089552\charrsid3038209 .}{\b\lang2057\langfe1033\langnp2057\insrsid12089552\charrsid3038209 FURUUCHI}{ \b\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 SUISAN COMPANY LTD vs HIROSHI TOKUHISA AND TWO OTHERS, Civil Action No.95 of 2009 HC SUVA; this was an application under Order 23 Rule (1)(a) where BYRNE J}{ \b\lang2057\langfe1033\langnp2057\insrsid3038209 }{\b\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 ruled;}{\b\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 taking the devaluation of the Fijian Dollar that the Plaintiff pay in to court the sum of FD$20,000/- by way of cash deposit w}{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 ithin 14 days of the delivery of}{ \lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 his ruling.( as security for costs.)}{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 \par \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid2712275\charrsid3038209 While appreciating the }{\b\ul\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 aforesaid case law submitted by the respective counsel, I ventured to examine further the available authorities as follows}{\lang2057\langfe1033\langnp2057\insrsid5902541\charrsid3038209 :}{\lang2057\langfe1033\langnp2057\insrsid2712275\charrsid3038209 \par \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 In }{\b\i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 Sir Lindsay Parkinson & Co Ltd -v- Triplan Ltd }{\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 [1973] QB}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 609, }{ \i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 His Lordship Lord Denning}{\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 at page }{\i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 626}{ \lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 said:-}{\i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 \'93Turning now to the words of the statutes (the equivalent of our}{ \i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 section 402}{\i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 of}{\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 the Companies Act)}{ \i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 }{\b\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 t}{\b\i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 he important word is \'93may\'94.}{ \i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 That}{\b\i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 gives the judge discretion to order security or not}{ \i\lang2057\langfe1033\langnp2057\insrsid12282194\charrsid3038209 . There is no burden one way or the other. It is discretion to be exercised in all the circumstances of that case.\'94}{\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 }{ \i\lang2057\langfe1033\langnp2057\insrsid14638211 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\b\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 Lawton LJ }{\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 at }{ \i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 629,}{\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 on the parameters of the discretion said:-}{\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 \'93 ...once it is established }{\b\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 by credible evidence that there is reason to believe that the Plaintiff company will be unable to pay the costs of the defendants}{ \i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 if they are successful in their defence, the }{\b\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 Court has a discretion}{ \i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 , and that }{\b\i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 discretion ought not to be hampered by any special rules or regulations, nor ought it to be put into a straitjacket by considerations of burden of proof. It will exercise having regard to all the circumstances of this case}{ \i\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 .....\'94}{\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 (emphasis added) \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\b\i\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 In Cowell \endash v- Taylor }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 [1885] 31 Ch. D 32}{\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 at }{\i\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 38}{ \lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 }{\i\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 Bow}{\i\lang2057\langfe1033\langnp2057\insrsid6036200\charrsid3038209 }{ \i\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 en LJ,}{\i\lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 brings our attention to the old rule that poverty is no bar to litigation. ( also }{\b\i\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 Ross v Jacques(1841) }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 [1841] EngR 530}{\b\i\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 ; }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 8 M&W 135}{\lang2057\langfe1033\langnp2057\insrsid9640548\charrsid3038209 )}{ \lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 \par \par }{\b\lang2057\langfe1033\langnp2057\insrsid9201990\charrsid3038209 In K}{\b\i\lang2057\langfe1033\langnp2057\insrsid9201990\charrsid12089552 adavu Shipping Company Ltd v Dominion Insurance Ltd [2009] FJHC 71; HBC508.2006 (23 February 2009)}{ \b\lang2057\langfe1033\langnp2057\insrsid9201990\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid9201990\charrsid3038209 Master Udit cited}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 K P Cable Investments Pty Ltd \endash v- Meltglow Pty Ltd and others }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 [1995] 56 FCR 189}{ \lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid9201990\charrsid3038209 (}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 After referring to the leading cases in Australia such}{ \lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 as}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 }{\b\i\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 Fincott & Associates Pty Ltd \endash v- Eretta Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 [1982] 16 FCR 497}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 and }{\b\i\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 Interwest Ltd \endash v- Tricontinental Corporation Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 [1991] 5 ACSR 621}{\b\i\lang2057\langfe1033\langnp2057\insrsid9201990\charrsid3038209 )}{ \b\i\lang2057\langfe1033\langnp2057\insrsid10421419\charrsid3038209 and}{\b\i\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 quoting}{ \lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 }{\b\i\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 Beagly J}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid10421419\charrsid3038209 summarized}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 the factors without hampering the unfettered discretion of the Court in such matters, as follows:}{ \b\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5651245\charrsid3038209 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 That such applicat}{\lang2057\langfe1033\langnp2057\insrsid10421419\charrsid3038209 ions should be brought promptly}{\lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 ,}{ \lang2057\langfe1033\langnp2057\insrsid5651245 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5651245\charrsid3038209 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid5651245\charrsid3038209 That regard is to be had to the strength and bona fides of the }{\lang2057\langfe1033\langnp2057\insrsid10421419\charrsid3038209 applicants case}{ \lang2057\langfe1033\langnp2057\insrsid10110673\charrsid3038209 ,}{\lang2057\langfe1033\langnp2057\insrsid5651245 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid10110673\charrsid3038209 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid10110673\charrsid3038209 Whether the applicant's }{\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 impecuniosities}{\b\lang2057\langfe1033\langnp2057\insrsid10110673\charrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid10110673\charrsid3038209 was caused by the respondent's conduct, the subject of the claim,}{\lang2057\langfe1033\langnp2057\insrsid10110673 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid10110673\charrsid3038209 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid10110673\charrsid3038209 Whether the respondent's application for security is oppressive, in the sense that it is being used merely to deny an impecunious applicant a right to litigate,}{ \lang2057\langfe1033\langnp2057\insrsid10110673 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid1260503\charrsid3038209 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid1260503\charrsid3038209 Whether there are any persons standing behind the company who are likely to benefit from the litigation and who are willing to provide the necessary security,}{ \lang2057\langfe1033\langnp2057\insrsid5995414 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5995414\charrsid3038209 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid5995414\charrsid3038209 Whether persons standing behind the company have offered any personal undertaking to be liable for the costs and if so, the form of any such undertaking,}{ \lang2057\langfe1033\langnp2057\insrsid1260503 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12089552 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5995414\charrsid3038209 \hich\af0\dbch\af0\loch\f0 7.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12089552 { \lang2057\langfe1033\langnp2057\insrsid5995414\charrsid3038209 Security will only ordinarily be ordered against a party who is in substance a plaintiff, and an ord er ought not to be made against parties who are defending themselves and thus forced to litigate}{\lang2057\langfe1033\langnp2057\insrsid10421419\charrsid3038209 .}{\lang2057\langfe1033\langnp2057\insrsid5995414\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid10421419\charrsid3038209 The following cases were referred to in the aforesaid case;}{\lang2057\langfe1033\langnp2057\insrsid10421419 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 M A Productions Pty Ltd v Austarama Television Pty Ltd and Anor }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1982) 7 ACLR 97}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 Smail v Burton }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1975) VR 776}{\b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 per Gillard J at 777, Caruso Australia Pty Ltd v Portec (Aust) Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1984) 8 ACLR 818,}{\b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 see Grant v The Banque Franco-Egyptienne Egyptienne}{\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 }{\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1876) 1 CPD 143,}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 Interwest Ltd \endash v- Tricontinental Corporation Ltd [1991] 5 ACSR 621, Fincott & Associates Pty Ltd \endash v- Eretta Pty Ltd [1982] 16 FCR 497, Ross v Jacques(1841) [1841] EngR 530; 8 M&W 135, Cowell \endash v- Taylor [1885] 31 Ch. D 32, Concorder Enterprise Ltd -v- Anthony Motors (Hutt) Ltd (No.2) [1977] 1 NZLR 516, Trident International Freight Servi ces Ltd. \endash v- Mandesher Ship Canal Co. [1990] BCLL 26, Keary Developments Ltd \endash v- Tarmac Construction Ltd and Anor [1995] 3 ALLER 534, Drumdurno Pty Ltd v Braham [1982] FCA 161; [1982] 64 FLR 227, Northampton Coal & Iron Wagon Co \endash v- Midland Wagon Co [1878] 7 Ch D 500, Porzelack KG -v- Porzelack (vic) Ltd. [1987] 1 ALLER 1074 at 1077, Bryan F Fincott S Associates Pty Ltd \endash v- Eretta Pty Ltd and others [1987] 16 FCR 497,; Heller Factors Pty Ltd v John Arnold's Surf Shop Pty Ltd (in liq) }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1979) ACLC 32}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 ,446; Sydmar Pty Ltd v Statewise Developments Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1987) 5 ACLC 480}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 ; Weily's Quarries v Devine Shipping Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 [1994] TASSC 76}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 ; }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1994) 14 ACSR 186,}{\b\i\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 Clyde Industries Ltd v Ryad Engineering Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14236555\charrsid3038209 (1993) 11 ACLC 325.}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 ,}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 Mantaray Pty Ltd v Brookfield Breeding Co Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 (1990) 8 ACLC 304,}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 Cameron's Unit Services Pty Ltd v Kevin R Whelpton and Associates (Aust) Pty Ltd }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 (1986) 13 FCR 46,}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 Hession v Century 21 South Pacific Ltd (1992) 28 NSWLR 120, Bell Wholesale Co Pty Ltd v Gates Export Corporation }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 [1984] FCA 34; (1984) 2 FCR 1,}{\b\i\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 Sent v Jet Corporation }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 [1984] FCA 178}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 ; }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 (1984) 2 FCR 201,}{\b\i\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 Memetu v Lissenden (1983) 8 ACLR 364, ; Yandil Holdings Pty Ltd v Insurance Co of North America }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 (1985) 3 ACLC 542.}{\lang2057\langfe1033\langnp2057\insrsid1783362\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 \par }{\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 A PRIVY COUNCIL APPEAL }{\ul\lang2057\langfe1033\langnp2057\insrsid10506038\charrsid3038209 CASE (}{\ul\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 FROM THE CAYMAN ISLANDS}{\lang2057\langfe1033\langnp2057\insrsid14638211\charrsid3038209 );}{\lang2057\langfe1033\langnp2057\insrsid10421419 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 In }{\b\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 (1) GFN SA, (2) Artag Meridian Ltd, (3) Caribbrean Energy Company Vs}{ \b\lang2057\langfe1033\langnp2057\insrsid6954268\charrsid3038209 .}{\b\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 The Liquidators of Bancredit Cayman Limited (in Official Liquidation) Privy Council Appeal}{ \b\ul\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 }{\b\lang2057\langfe1033\langnp2057\insrsid15353696\charrsid3038209 No 0014 of 2009}{\b\lang2057\langfe1033\langnp2057\insrsid6954268\charrsid3038209 ,}{ \b\lang2057\langfe1033\langnp2057\insrsid3038209 }{\b\lang2057\langfe1033\langnp2057\insrsid6954268\charrsid3038209 (before Lord Scott, Lord Rodger, Lady}{\b\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 }{ \b\lang2057\langfe1033\langnp2057\insrsid6954268\charrsid3038209 Hale,}{\b\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 }{\b\lang2057\langfe1033\langnp2057\insrsid6954268\charrsid3038209 Lord Neuberger and Sir Jonathan Parker), (heard on 6th May and Judgment delivered by Lord Scott on 4th November 2009) }{\b\lang2057\langfe1033\langnp2057\insrsid13722122 \par }{\b\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid13722122\charrsid3038209 LORD SCOTT, }{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 stated at}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 paragraph 9;}{ \lang2057\langfe1033\langnp2057\insrsid7538881 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 It seems to their Lordships clear from the case law dealing with security for costs issues that the court has an inherent jurisdiction to make security for costs orders but that the exercise of that jurisdiction is subject to what has become the settled practice of the court. For example, the rule that an order for security for costs will not be made a gainst a defendant was part of that settled practice}{\b\ul\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 . The rule that such an order will not be made against an impecunious plaintiff was also part of that settled practice but was varied by statute in the case of impecunious corporate plaintiffs}{ \lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 by }{\i\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 section 24 of the 1857 Act}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 , the statutory predecessor of section }{\i\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 74 of the Companies}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 }{ \i\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 Act. Order 23 Rule 1}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 , like its predecessors, specifies particular circumstances in which the court may entertain an application for security for costs. The Rules of Court did not c reate or confer the power to do so but, rather, harnessed the power so as to control its exercise}{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 .}{ \lang2057\langfe1033\langnp2057\insrsid7538881 \par }{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 (emphasis by bold underlining and italics are mine)}{\lang2057\langfe1033\langnp2057\insrsid7607602 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 LORD NEUBERGER (with whom Lord Rodger, Lady Hale and Sir Jonathan Parker concur) }{\lang2057\langfe1033\langnp2057\insrsid11147302\charrsid3038209 stated at}{ \lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 paragraph 30 and 34 thus;}{\lang2057\langfe1033\langnp2057\insrsid14638211 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 At paragraph 30;}{\lang2057\langfe1033\langnp2057\insrsid7607602 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 As Lord Scott so clearly demonstrates, the court has an inherent jurisdiction to order security for costs, and, while that jurisdiction is essentially discretionary, }{\b\ul\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 the discretion must be exercised not merely in a generally judicial manner, but in a manner which accords with the settled practice of the court, as circumscribed or extended by primary or secondary legislation}{ \lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 .}{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid7607602 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 At}{\b\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 paragraph 34}{ \lang2057\langfe1033\langnp2057\insrsid13848540\charrsid3038209 ;}{\lang2057\langfe1033\langnp2057\insrsid7607602 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 For my part, I would prefer to leave entirely open questions such as whether and if so when it is possible or appropriate to order security for costs against a defendant who brings a counterclaim or defends by way of set-off, whether and if so when securi ty can be ordered in the context of a committal application, or in connection with an application to set aside a compromise of an action, and whether the decision of the Court of Appeal in }{ \i\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 C T Bowring & Co (Insurance) Ltd v Corsi Partners Ltd }{\lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 [1994] 2 Lloyd}{\lang2057\langfe1033\langnp2057\insrsid3038209 '}{ \lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 s Rep 567 was correct. We did not hear much, if any, argument on any of those issues and it is unnecessary to resolve them for the purpose of determining this appeal. That is not meant to imply that I positively disagree with anything Lord Scott says on t hose issues in his admirable opinion: it is merely that I prefer to leave them for determination when they have been subject to fuller argument}{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{ \lang2057\langfe1033\langnp2057\insrsid7607602\charrsid3038209 .}{\lang2057\langfe1033\langnp2057\insrsid7538881\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid13848540\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid10252396\charrsid3038209 Except for the primary legislation in section 402 of the Companies Act enabling court to order security for costs subject to there being at least }{ \lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid10252396\charrsid3038209 credible testimony}{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid10252396\charrsid3038209 therein, this court has not been submitted any primary or secondary legislation curtailing the discretion of court.}{\lang2057\langfe1033\langnp2057\insrsid10252396 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid1595385\charrsid3038209 In addition to the aforesaid guidelines }{\lang2057\langfe1033\langnp2057\insrsid4747001\charrsid3038209 this court considers the following to be relevant as well;}{ \lang2057\langfe1033\langnp2057\insrsid13722122 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid4747001\charrsid3038209 As the application is for security for costs, and whether to award costs or not itself is very much within the discretion of court, }{ \b\ul\lang2057\langfe1033\langnp2057\insrsid4747001\charrsid3038209 the court has to first consider whether it would award costs }{\b\ul\lang2057\langfe1033\langnp2057\insrsid745548\charrsid3038209 against the Plaintiff}{ \b\ul\lang2057\langfe1033\langnp2057\insrsid4747001\charrsid3038209 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid1658613\charrsid3038209 in the event the defendant succeeds}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid4747001\charrsid3038209 in its }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid1658613\charrsid3038209 defence}{\lang2057\langfe1033\langnp2057\insrsid4747001\charrsid3038209 .}{\lang2057\langfe1033\langnp2057\insrsid9377922 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid9377922\charrsid3038209 In this action the plaintiff does not disclose direct physical or tangible damage}{\lang2057\langfe1033\langnp2057\insrsid9723825\charrsid3038209 but damage arising from alleged breach of copyrights}{\lang2057\langfe1033\langnp2057\insrsid9377922\charrsid3038209 . As much as an allegation of conspiracy is taken seriously by court if it is not established by evidence it would in its wake invite an order }{\lang2057\langfe1033\langnp2057\insrsid745548\charrsid3038209 for}{\lang2057\langfe1033\langnp2057\insrsid13327964\charrsid3038209 costs.}{ \lang2057\langfe1033\langnp2057\insrsid10237237\charrsid3038209 However what is required by section 402 is not whether the Plaintiff will succeed in establishing its case but whether the defendant shall succeed in its defence.}{ \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid13451364\charrsid3038209 If }{\lang2057\langfe1033\langnp2057\insrsid10237237\charrsid3038209 the defendants defence succeeds}{ \lang2057\langfe1033\langnp2057\insrsid13451364\charrsid3038209 then this is an action as such in which the court is likely to award costs. In }{\lang2057\langfe1033\langnp2057\insrsid745548\charrsid3038209 other words this is}{ \lang2057\langfe1033\langnp2057\insrsid13451364\charrsid3038209 an action in which the court sees no special reason not to award costs agai}{\lang2057\langfe1033\langnp2057\insrsid10237237\charrsid3038209 nst the Plaintiff in the event the defendant succeeds in its defence}{\lang2057\langfe1033\langnp2057\insrsid13451364\charrsid3038209 . It is the view of this court that such an assessment ought to be done with the least amount of inquiry in to the merits of }{\lang2057\langfe1033\langnp2057\insrsid745548\charrsid3038209 either the Plaintiffs case or the defendants defence so as not to prejudge the case.}{\lang2057\langfe1033\langnp2057\insrsid4747001 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid745548\charrsid3038209 As such, now this court shall consider whether it should require the plaintiff to give security for costs.}{\lang2057\langfe1033\langnp2057\insrsid745548 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid1658613\charrsid3038209 As the application is under section 402, first court has to verify whether the Plaintiff is a }{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{ \lang2057\langfe1033\langnp2057\insrsid1658613\charrsid3038209 limited company}{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid1658613\charrsid3038209 . The Plaintiff is as such described, and sues in such capacity and it is not a disputed fact.}{\lang2057\langfe1033\langnp2057\insrsid1658613 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid10237237\charrsid3038209 Therefore now }{\lang2057\langfe1033\langnp2057\insrsid16399458\charrsid3038209 t}{\lang2057\langfe1033\langnp2057\insrsid10237237\charrsid3038209 he court has to determine whethe}{ \lang2057\langfe1033\langnp2057\insrsid16399458\charrsid3038209 r there is }{\b\i\lang2057\langfe1033\langnp2057\insrsid16399458\charrsid3038209 credible testimony}{\lang2057\langfe1033\langnp2057\insrsid16399458\charrsid3038209 of }{ \b\i\lang2057\langfe1033\langnp2057\insrsid16399458\charrsid3038209 reasons to believe that the (Plaintiff) company will be unable to pay the costs of the defendant.}{\b\i\lang2057\langfe1033\langnp2057\insrsid10237237 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid12792553\charrsid3038209 Credible testimony}{\lang2057\langfe1033\langnp2057\insrsid12792553\charrsid3038209 imputes that it should be evidence that emanates through an accountable source or person and the court should find that source or person credible.}{\lang2057\langfe1033\langnp2057\insrsid9723825 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid9723825\charrsid3038209 The 1st defendants application for security for costs was supported by the affidavit of}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid9723825\charrsid3038209 Davina Chan its Legal Advisor. Parties}{\lang2057\langfe1033\langnp2057\insrsid6751441\charrsid3038209 at the hearing on the 18/5/2010, made oral submissions and}{ \lang2057\langfe1033\langnp2057\insrsid9723825\charrsid3038209 have allowed court to deliver its order based on the affidavits.}{\lang2057\langfe1033\langnp2057\insrsid12792553\charrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid10774398\charrsid3038209 The said Davina Chand has caused a search to be made at the Registrar of Titles before stating that the Plaintiff company does not hold any property, according to that affidavit. Attached to the sa}{ \lang2057\langfe1033\langnp2057\insrsid5971213\charrsid3038209 i}{\lang2057\langfe1033\langnp2057\insrsid10774398\charrsid3038209 d affidavit is a letter marked DC1 along with the resignation of over 60 employees of the Plaintiff.}{ \lang2057\langfe1033\langnp2057\insrsid5971213 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid10774398\charrsid3038209 The plaintiff in fact in denying paragraph 4 of the said affida}{\lang2057\langfe1033\langnp2057\insrsid4343711\charrsid3038209 vit admits in the affidavit of i}{ \lang2057\langfe1033\langnp2057\insrsid10774398\charrsid3038209 ts Director }{\lang2057\langfe1033\langnp2057\insrsid5971213\charrsid3038209 Luke Mataika }{\lang2057\langfe1033\langnp2057\insrsid10774398\charrsid3038209 that the former employees of the Plaintiff did transfer to the 1st Defendant.}{\lang2057\langfe1033\langnp2057\insrsid4343711\charrsid3038209 Even in the Plaintiffs statement of claim the withdrawal of 39 of its staff by the 3rd defendant is admitted.}{ \lang2057\langfe1033\langnp2057\insrsid6751441\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid5971213 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid6751441\charrsid3038209 Even in the 1st affidavit of Luke Mataika}{\lang2057\langfe1033\langnp2057\insrsid12792553\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6751441\charrsid3038209 at paragraph 8 he admits as a Director of the Plaintiff that }{\lang2057\langfe1033\langnp2057\insrsid13184367\charrsid3038209 t}{\lang2057\langfe1033\langnp2057\insrsid6751441\charrsid3038209 he Plaintiff is a subsidiary and the holding company L awedua Trust Company Limited }{\lang2057\langfe1033\langnp2057\insrsid13184367\charrsid3038209 will indemnify any costs order against the Plaintiff. }{\lang2057\langfe1033\langnp2057\insrsid5971213 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid13184367\charrsid3038209 Though the aforesaid is credible testimony of reasons for this court to believe that the Plaintiff will be unable to pay the costs of the defendant, still the fact that th e Winding up cause against the Plaintiff bearing no.9 0f 2009 had been dismissed as evidenced by LM1, as far back as 27th of March 2009,}{\lang2057\langfe1033\langnp2057\insrsid748623\charrsid3038209 and the fact that the 1st and 2nd defendants were not aware of that dismissal, weighs to some e}{\lang2057\langfe1033\langnp2057\insrsid5971213\charrsid3038209 xtent in favour of he Pl aintiff, to suggest that the Plaintiff may be in a position to pay part of the costs thereby reducing the quantum of security to be deposited if so ordered by court.}{\lang2057\langfe1033\langnp2057\insrsid12792553 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid13661852\charrsid3038209 As such the requirements of section 402 of the Companies Act are met for the court to exercise its discretion to award (and to what extent)or not to award security for costs.}{ \lang2057\langfe1033\langnp2057\insrsid11209717 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid13661852\charrsid3038209 The Plaintiffs Director Luke Mataika in his affidavit has stated that the Plaint iff is a subsidiary of another holding Company and as much as such company may pay the costs against the Plaintiff it can equally provide the security for costs for the Plaintiff to pursue its action.}{\lang2057\langfe1033\langnp2057\insrsid13661852 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid2234489\charrsid3038209 The principle that poverty should not be a bar to liti gation, is no doubt good and venerable law, especially in respect of natural persons. However in respect of limited liability companies which are essentially devices of commerce born and terminated by the availability of funds, it is }{ \lang2057\langfe1033\langnp2057\insrsid13255547\charrsid3038209 not surprising that their right to litigate is equally determined by the availability of funds.}{\lang2057\langfe1033\langnp2057\insrsid13255547 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid13255547\charrsid3038209 Now I shall consider the 7 }{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 guidelines}{ \lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 enumerated above in the }{\b\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 Kadavu Shipping Company Ltd v Dominion Insurance Ltd [2009] FJHC 71; HBC508.2006 (23 February 2009) }{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 case;}{\lang2057\langfe1033\langnp2057\insrsid13255547 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6363230\charrsid3038209 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 That such applications should be brought promptly,- this aspect works against the Plaintiff in that the application for security for cost was made by the defendants after an application for winding up had been made (and dismissed) and as such appear to be an application out of bona fide concern of the Plaintiffs inability to pay costs. In any event though it is the first it is not the best guideline.}{\lang2057\langfe1033\langnp2057\insrsid6363230 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6363230\charrsid3038209 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 That regard is to be had to the strength and bona fides of the applicants case,- this is a guideline that this court is cautious to use as it tends to prejudge the case}{ \lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 , however on a surface examination it does not prevent the defendants application.}{\lang2057\langfe1033\langnp2057\insrsid6363230 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6363230\charrsid3038209 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 Whether the applicant}{\lang2057\langfe1033\langnp2057\insrsid3038209 '}{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 s impecuniosity}{ \b\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 was caused by the respondent}{\lang2057\langfe1033\langnp2057\insrsid3038209 '}{ \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 s conduct, the subject of the claim,}{\lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 - this guideline answers to some extent in favour of the Plaintiff going by its statement of claim, however as the Plaintiff has given notice of}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 Force Majeure, prior to 1st defendants }{\lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 termination}{ \lang2057\langfe1033\langnp2057\insrsid3038209 "}{\lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 , the cause of impecuniosity is an open fact.}{\lang2057\langfe1033\langnp2057\insrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid6363230 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6363230\charrsid3038209 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 Whether the respondent}{\lang2057\langfe1033\langnp2057\insrsid3038209 '}{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 s application for security is oppressive, in the sense that it is being used merely to deny an impecunious applicant a right to litigate,}{\lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 -the Plaintiff is a limited company, and it cannot expect the defendant to ignore the possibility of not recovering its costs. The amounts sought as security}{\lang2057\langfe1033\langnp2057\insrsid5008837\charrsid3038209 for costs,}{ \lang2057\langfe1033\langnp2057\insrsid8224761\charrsid3038209 as against the claim of the Plaintiff (as indicated by the Plaintiffs counsel in oral submissions being not less than $6 million) is not }{ \lang2057\langfe1033\langnp2057\insrsid5008837\charrsid3038209 oppressive.}{\lang2057\langfe1033\langnp2057\insrsid6363230 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6363230\charrsid3038209 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 Whether there are any persons standing behind the company who are likely to benefit from the litigation and who are willing to provide the necessary security,}{ \lang2057\langfe1033\langnp2057\insrsid5008837\charrsid3038209 -according to the Plaintiffs Director Luke Mataika the holding company is in such a position, however no details of its assets were made available to court.}{ \lang2057\langfe1033\langnp2057\insrsid6363230 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6363230\charrsid3038209 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 Whether persons standing behind the company have offered any personal undertaking to be liable for the costs and if so, the form of any such undertaking,}{ \lang2057\langfe1033\langnp2057\insrsid5008837\charrsid3038209 - no such personal undertaking.}{\lang2057\langfe1033\langnp2057\insrsid6363230 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5008837\charrsid3038209 \hich\af0\dbch\af0\loch\f0 7.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid5008837\charrsid3038209 Security will only ordinarily be ordered ag ainst a party who is in substance a plaintiff, and an order ought not to be made against parties who are defending themselves and thus forced to litigate.- this guideline works against the Plaintiffs counter application for security for costs against the 1st defendant.}{\lang2057\langfe1033\langnp2057\insrsid6363230\charrsid3038209 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid2234489\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid13255547\charrsid3038209 The 1st defendant seeks security in a sum of $35,000/-, while the 2nd defendant seeks a sum of $28,000/-}{\lang2057\langfe1033\langnp2057\insrsid8747526\charrsid3038209 . Given the possibility that the Plaintiff may be able to meet part of the costs, I reduce the security to be deposited by one third (1/3). }{\lang2057\langfe1033\langnp2057\insrsid3087349 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid8747526\charrsid3038209 As such}{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 the security for costs to be deposited}{\lang2057\langfe1033\langnp2057\insrsid3038209 ;}{ \lang2057\langfe1033\langnp2057\insrsid3087349 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid8747526\charrsid3038209 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls7\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid8747526\charrsid3038209 in respect of the 1st }{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 defendant}{\lang2057\langfe1033\langnp2057\insrsid8747526\charrsid3038209 shall be}{ \lang2057\langfe1033\langnp2057\insrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid8747526\charrsid3038209 $23,333/=, }{\lang2057\langfe1033\langnp2057\insrsid13255547 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3087349\charrsid3038209 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls7\adjustright\rin0\lin720\itap0\pararsid3038209 { \lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 in respect of the 2nd defendant shall be $18,666/=.}{\lang2057\langfe1033\langnp2057\insrsid3087349 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 As the defendants have a counter claim as well and there is no purpose in staying indefinitely an action if the Plaintiff is unable to deposit the security for costs, and as the practice of this court is to strike out claims when directions of court are n ot complied with, this court is of the view that unless the security for costs is deposited within a given period of time the Plaintiff companies statement of claim }{\lang2057\langfe1033\langnp2057\insrsid7303488\charrsid3038209 against the respective defendant }{\lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 ought to be dismissed}{\lang2057\langfe1033\langnp2057\insrsid7303488\charrsid3038209 .}{\lang2057\langfe1033\langnp2057\insrsid14692095 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 Therefore it is hereby orde}{\lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 red that the Plaintiffs }{\lang2057\langfe1033\langnp2057\insrsid7631297\charrsid3038209 statement of }{\lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 claim}{\lang2057\langfe1033\langnp2057\insrsid7631297\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid7303488\charrsid3038209 in respect of the 1st defendant and the 2nd defendant }{\lang2057\langfe1033\langnp2057\insrsid7631297\charrsid3038209 shall be struck out}{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 }{ \lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 unless }{\lang2057\langfe1033\langnp2057\insrsid7303488\charrsid3038209 respectively }{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 the sum of $23,333/= and a sum of $18,666/= is deposited as security for costs }{\lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 within 28}{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 days of this order}{ \lang2057\langfe1033\langnp2057\insrsid14692095\charrsid3038209 .}{\lang2057\langfe1033\langnp2057\insrsid3087349\charrsid3038209 }{\lang2057\langfe1033\langnp2057\insrsid3087349 \par }{\lang2057\langfe1033\langnp2057\insrsid3038209\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid7303488\charrsid3038209 Parties to bear their costs of this application for security for costs.}{\lang2057\langfe1033\langnp2057\insrsid4357981\charrsid3038209 \par }{\b\lang2057\langfe1033\langnp2057\insrsid13595082\charrsid3038209 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\b\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 Y I FERNANDO \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 JUDGE \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3038209 {\ul\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 \par }{\lang2057\langfe1033\langnp2057\insrsid6242578\charrsid3038209 At Lautoka \par 10th August 2010. \par }}