The Presbyterian Church (NSW) Property Trust v Scots Church Development Ltd [2007] NSWSC 676

Reported Decision : 64 ACSR 31

New South Wales Supreme Court

CITATION : The Presbyterian Church (NSW) Property Trust v Scots Church Development Ltd [2007] NSWSC 676

HEARING DATE(S) : 28/11/06 [then written submissions]

JUDGMENT DATE : 29 June 2007

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : Direct that liquidators discharge the second defendant's mortgage over the plaintiff's lot.

CATCHWORDS : CONVEYANCING [155]- Torrens title- Exceptions to indefeasibility- Fraud- First defendant buys whole of plaintiff's property- Agrees to sell one lot back to plaintiff- Later mortgages property to second defendant- Whether this a fraud on plaintiff such as to deny second defendant's indefeasible title- Second defendant never undertook to respect plaintiff's interest- No fraud. CORPORATIONS [1705]- Liquidators- Winding up of second defendant- Plaintiff cannot prove in winding up- Liquidators should nonetheless discharge mortgage over plaintiff's lot- Rule in Ex parte James applied. ESTOPPEL [29]- Estoppel by convention- Not proven- No common assumption that plaintiff's lot quarantined from mortgage- No evidence of plaintiff's detrimental reliance on assumption.

LEGISLATION CITED : Corporations Act 2001 (Cth) ss 468, 479(3) Real Property Act 1900, ss 42, 43

ASIC v Karl Suleman Enterprises Pty Ltd (2003) 45 ACSR 401 Assets Co Ltd v Mere Roihi [1905] AC 176 Bahr v Nicolay (No 2) (1988) 164 CLR 604 Bank of South Australia Ltd v Ferguson (1998) 192 CLR 248 Binions v Evans [1972] Ch 359 Downs Distributing Co Pty Ltd v Associated Blue Star Stores Pty Ltd (1948) 76 CLR 463 Ebner v Official Trustee in Bankruptcy (2003) 126 FCR 281 Ex parte James (1874) 9 Ch App 609 Fordham v Fordyce [2007] NSWCA 129 Frazer v Walker [1967] 1 AC 569 Garofano v Reliance Finance Corporation Pty Ltd (1992) 5 BPR 11,941 Grgic v Australian & New Zealand Banking Group Ltd (1994) 33 NSWLR 202 Harkness v Commonwealth Bank of Australia Ltd (1993) 32 NSWLR 543 Heggies Bulkhaul Ltd v Global Minerals Australia Pty Ltd (2003) 59 NSWLR 312 Hillpalm Pty Ltd v Heaven's Door Pty Ltd (2004) 220 CLR 472 Hypec Electronics Pty Ltd v Mead (2003) 179 FLR 295 JA Westaway & Son Pty Ltd v Registrar-General (1996) 7 BPR 14,773 LHK Nominees Pty Ltd v Kenworthy (2002) 26 WAR 517 Loke Yew v Port Swettenham Rubber Co Ltd [1913] AC 491 Lyus v Prowsa Developments Ltd [1982] 1 WLR 1044 McCrae v Wheeler [1969] NZLR 333 CASES CITED : Merrie v McKay (1897) 16 NZLR 124 Mills v Stokman (1967) 116 CLR 61 MK & JA Roche Pty Ltd v Metro Edgley Pty Ltd [2005] NSWCA 39 Moratic Pty Ltd v Gordon [2007] NSWSC 5 Munro v Stuart (1924) 41 SR (NSW) 203n Oertel v Hordern (1902) 2 SR (NSW) Eq 37 Pyramid Building Society v Scorpion Hotels Pty Ltd [1998] VR 188 Re Ayoub; Ex parte Silvia (1983) 67 FLR 144 Re Clark; Ex parte Texaco Ltd [1975] 1 WLR 559 Re David Payne & Co Ltd [1904] 2 Ch 608 Re Fenwick Stobart & Co Ltd [1902] 1 Ch 507 Re Hampshire Land Co [1896] 2 Ch 743 Re Steane's (Bournemouth) Ltd (1949) 66 TLR 71 Re Tyler [1907] 1 KB 865 RM Hosking Properties Pty Ltd v Barnes [1971] SASR 100 Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65 Snowlong Pty Ltd v Choe (1991) 23 NSWLR 198 Star v Silvia (No 1) (1994) 12 ACLC 600 Waimiha Sawmilling Co v Waione Timber Co [1923] NZLR 1137; [1926] AC 101 Waterman v Gerling Australia Insurance Co Pty Ltd (2005) 65 NSWLR 300 Wicks v Bennett (1921) 30 CLR 80 Young v ACN 081 162 512 (2005) 52 ACSR 629