The Court dismissed an application for security for costs, holding that the defendant failed to establish by credible testimony that the plaintiff corporation would be unable to pay costs. A presumption of insolvency established under s 459C of the Corporations Act in prior winding-up proceedings was held not to be a reliable indicator of insolvency for security for costs purposes, particularly where the Supreme Court had itself characterised the presumption as arising from tactical conduct and modest debts. The Court accepted that an unpaid costs order of approximately $166,000 owed by the defendant to the plaintiff constituted a sufficient asset in Victoria to meet the security sought of $66,081.92.
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