CA 14 August 1992. Appeal by Europa bringing two actions against Circle, claiming the sum due on a valuation certificate and sums due in respect of works carried out after, and not included in the valuation certificate. Circle contended that Europa had been paid in full, and alleged that certain pre-requisites to establish a claim for payment for extra work had not been satisfied. Circle applied for security for costs under Companies Act 1985 s726. One of the provisions stated if there was ..."reason to believe that the company will be unable to pay the Defendant`s costs if successful in his defence, require sufficient security to be given for those costs and may stay all proceedings until the security is given....: The Judge declined Circle`s application; Europa appealed. On appeal, first issue was whether the court had jurisdiction under s726. Circle submitted that the Judge was wrong to hold that the Court`s jurisdiction under s726 was not established - Held, reversing the Judge-