CEG Direct Securities Pty Ltd v Shining Pty Ltd (No 2) [2020] NSWSC 1213

Supreme Court New South Wales

Medium Neutral Citation: CEG Direct Securities Pty Ltd v Shining Pty Ltd (No 2) [2020] NSWSC 1213 Hearing dates: 6 July 2020 Date of orders: 9 September 2020 Decision date: 09 September 2020 Jurisdiction: Common Law Before: Cavanagh J Decision: See [61] and [141] for determination of separate questions. Catchwords: CIVIL PROCEDURE — Separate determination of questions — final decision — whether powers of attorney forged — mortgages and loan agreements executed pursuant to forged powers of attorney LAND LAW — Torrens title — Indefeasibility of title — Effects of indefeasibility — Construction of third party mortgages — Whether indefeasibility extends to covenants contained in the mortgages and loan agreements — Identification of debt secured by mortgage representing charge on the land — Where no sum advanced to or at request of mortgagors — Whether acknowledgement of receipt or indebtedness — Meaning of "Secured Money" and "Collateral Documents" in mortgages GUARANTEE AND INDEMNITY — Factors affecting validity of guarantee — Forgery LAND LAW — Torrens title — The register — Correction of the register Legislation Cited: Real Property Act 1900 (NSW), s 42 Cases Cited: Cassegrain v Gerard Cassegrain & Co Pty Ltd (2015) 254 CLR 425; [2015] HCA 2 CEG Direct Securities Pty Ltd v Shining Pty Ltd [2020] NSWSC 858 Hepples v Commissioner of Taxation (1990) 22 FCR 1 MDN Mortgages Pty Ltd v Caradonna [2010] NSWSC 1298 Perpetual Trustees Victoria Ltd v English [2010] NSWCA 32 Perpetual Trustees Victoria Ltd v Cox [2014] NSWCA 328 Perpetual Trustees Victoria Ltd v English [2009] NSWSC 478 Perpetual Trustees Victoria Ltd v Tsai [2004] NSWSC 745 Printy v Provident Capital Ltd [2007] NSWSC 287 PT Ltd v Maradona Pty Ltd (1992) 25 NSWLR 643 Pyramid Building Society (In Liquidation) v Scorpion Hotels Pty Ltd [1998] 1 VR 188 Small v Tomassetti [2001] NSWSC 1112 Vella v Permanent Mortgages Pty Ltd [2008] NSWSC 505 Winau Aust Pty Ltd & Ors v LCC Property Development Pty Limited [2020] NSWSC 434 Winau Aust Pty Ltd v LCC Property Development Pty Limited (No 2) [2020] NSWSC 586 Yazgi v Permanent Custodians Limited [2007] NSWCA 240 Texts Cited: Jeremy Stoljar, 'Mortgages, indefeasibility and personal covenants to pay' (2008) 82 Australian Law Journal 28 Category: Principal judgment Parties: CEG Direct Securities Pty Ltd (Plaintiff/First Cross-Defendant) Shining Pty Ltd (First Defendant) Mengnan Wang (Second Defendant/Second Cross-Defendant) Xihai Wang (Third Defendant/Second Cross-Claimant) Hai Rong Li (Fourth Defendant/First Cross-Claimant) Registrar-General of Land Titles (Third Cross-Defendant) Representation: Counsel: J Baird (Plaintiff/First Cross-Defendant) D Smallbone (Third and Fourth Defendants/First and Second Cross-Claimants) A Douglas-Baker (Third Cross-Defendant)