Demondrille Nominees Pty Ltd v Shirlaw, Kevin R & Anor & Shirlaw, Kevin R v Cornelis Holdings Pty Ltd (in liq) & Anor [1997] FCA 1220

Demondrille Nominees Pty Ltd v Shirlaw, Kevin R & Anor & Shirlaw, Kevin R v Cornelis Holdings Pty Ltd (in liq) & Anor [1997] FCA 1220

Demondrille's caveats must be withdrawn as it no longer had an equitable estate commensurate with the right to specific performance; the Agreement for Sale was void at and after its making as it constituted an uncommercial and insolvent transaction under ss 588FB and 588FC Corporations Law.

Jurisdiction
Australia
Judgment Date
13 November 1997
Procedural Posture
Appeal / Judgment on Appeal and Cross Appeal
Outcome
appeal dismissed; cross-appeal allowed
Legal Topics
['caveats Under Torrens System' 'sale of Land Contract Construction' 'voidable Transactions' 'uncommercial and Insolvent Transactions']
['conveyancing' 'contract Law' 'corporations Law'] ['caveats Under Torrens System' 'sale of Land Contract Construction' 'voidable Transactions' 'uncommercial and Insolvent Transactions']

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Procedural Posture

Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 ['Whether the purchaser holds a caveatable interest under a land sale agreement where the deposit was not actually paid' 'Construction of deposit clause in land sale contract' 'Whether the contract was an uncommercial and insolvent transaction under ss 588FB and 588FC Corporations Law' 'Entitlement to equitable relief and enforceability of caveat']

Ratio Decidendi

Demondrille's caveats must be withdrawn as it no longer had an equitable estate commensurate with the right to specific performance; the Agreement for Sale was void at and after its making as it constituted an uncommercial and insolvent transaction under ss 588FB and 588FC Corporations Law.

Court Disposition

appeal dismissed; cross-appeal allowed

Orders

  • ['The appeal be dismissed.' "The appellant pay the respondents' costs of the appeal." 'The cross-appeal be allowed.' 'The Agreement for Sale of Land dated 9 February 1994 between Cornelis Holdings Pty Ltd and Demondrille Nominees Pty Limited declared void at and after the date of that agreement, namely 9 February...