Diemasters v Meadowcorp and Jain v Registrar General [2001] NSWSC 495

Reported Decision : 52 NSWLR 572

New South Wales Supreme Court

CITATION : Diemasters v Meadowcorp and Jain v Registrar General [2001] NSWSC 495 revised - 20/06/2001 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 3238 of 2000; 1374 of 2001 HEARING DATE(S) : 26 and 27 April 2001 JUDGMENT DATE : 18 June 2001

Diemasters Pty Limited (First Plaintiff in Matter 3238/2000) Kensington Nominees Pty Limited (Second Plaintiff in Matter 3238/2000) George and Esther Gherlenda (Third Plaintiffs in Matter 3238/2000) Teresa Ruth Steiner (Fourth Plaintiff in Matter 3238/2000) PARTIES : Meadowcorp Pty Limited (First Defendant in Matter 3238/2000) Narendra Kumar Jain (Second Defendant in Matter 3238/2000) Charles Chelliah (Third Defendant in Matter 3238/2000) Narendra Kumar Jain (Plaintiff in Matter 1374/2001) Registrar General (First Defendant in Matter 1374/2001) Charles Chelliah (Second Defendant in Matter 1374/2001) JUDGMENT OF : Windeyer J at 1

Mr D L Warren (Plaintiffs in 3238/2000) COUNSEL : Mr I Sanderson (Mr Jain) Mr Moloney (Mr Chelliah - submitting) Mr I Wales SC with him Mr P Walsh (Registrar General) Peter Zipkis (Plaintiffs in 3238/2000) SOLICITORS : Sullivans Solicitors (Mr Jain) Eddy & Moloney (Mr Chelliah - submitting) Kenneth Charles Hall (Registrar General) CATCHWORDS : CONVEYANCING - land under the Torrens System - discharge of mortgage procured by fraud of mortgagor - property then sold - mortgage remaining registered - mortgagees lodged caveat before transfer lodged - whether mortgagees have priority over purchasers CONVEYANCING - land under the Torrens System - discharge of mortgage procured by fraud - land then sold - whether incoming purchaser entitled to protection of s43A CONVEYANCING - incoming purchasers buying as joint tenants - one joint tenant party to fraud in discharge of mortgage - whether other joint tenant "tainted" or can take title unencumbered CONVEYANCING - land under the Torrens Title System - transfer not stamped - whether incoming purchaser entitled to protection of s43A CONVEYANCING - land under the Torrens Title System - claim against Torrens Assurance Fund - s129(1) of Real Property Act 1900 - whether incoming purchaser suffered damage as a result of the operation of the Act through being deprived of an interest in land through fraud - if would have taken unencumbered title if land under Old System Title Duties Act 1997 s301 Hansard NSW LA 3 May 2000 p 5187 LEGISLATION CITED : Law Reform Commission Report 76 (1996) Torrens Title: Compensation for Loss Real Property Act 1900 s36(6A): s 41; s43A; s43A(1); s74I; s74MA; s126; s129; s129(1); s132(1): s132(2); s133(4) Real Property Amendment (Compensation) Act 2000 Pt 14 Ex parte Adamson: In re Collie [1878] LR 8 ChD 807 Finlay & Ors v R & I Bank of Western Australia & Anor [1993] Conv R 55-686 Finucane v The Registrar of Titles [1902] St R Qd 78 Forsyth v Blundell (1973) 129 CLR 477 Guthrie v ANZ Banking Group Limited [1991] NSW ConvR 55-591 Heid v Connell Investments Pty Limited (1987) 9 NSWLR 628 at 637 J & H Just Holdings Pty Limited v Bank of New South Wales (1960) 90 WN Pt 1 NSW 571 CASES CITED : Jonray (Sydney) Pty Limited v Partridge Brothers Pty Limited (1969) 89 WN Pt 1 NSW 568 Latec Investments Limited v Hotel Terrigal Pty Limited (1965) 113 CLR 265; Lord Abergevenny's case (1607) 6 Co Reports 78B; 77 ER 373 Myers v Smith (1992) 5 BPR 11494 Penny Nominees Pty Limited v Fountain No 3 [1991] NSW ConvR 55-56 Phillips v Phillips [1862] 4 De G F & J 245; 45 ER 1164 Robinson v The Registrar-General [1983] NSW Conv R 55-128 Sinclair v Hope Investments Pty Limited [1982] 2 NSWLR 870 DECISION : See paragraphs 41 and 42