Kralfly Pty Ltd v McVeigh, Dean [1995] FCA 814

Kralfly Pty Ltd v McVeigh, Dean [1995] FCA 814

There was insufficient evidence that the bankrupt provided the entire purchase price of the land; at best the evidence supports a possible proportional interest (up to five-sixths), not the whole interest claimed in the caveat. As the specification in the caveat was not reasonably accurate, it must be removed. The injunction restraining pledging of the land was varied from a $1 million to $1.2 million limit to reflect actual indebtedness and operational needs; there was no sufficient reason based on the strength of the trustee's case to refuse this variation.

Parties
Applicant: Kralfly Pty Limited; Respondent: Dean McVeigh
Jurisdiction
Australia
Judgment Date
08 September 1995
Procedural Posture
Originating Motion and Summons / Application for Removal of Caveat and Variation of Interlocutory Injunction
Outcome
Caveat removed; injunction varied
Legal Topics
Torrens Title System, Resulting Trusts, Caveats, Purchase Money Resulting Trust, Injunctions
Land Titles Trusts Bankruptcy Law Torrens Title System Resulting Trusts Caveats Purchase Money Resulting Trust Injunctions

Case Brief

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Parties

Kralfly Pty Limited

Applicant

Dean McVeigh

Respondent

Procedural Posture

Originating Motion and Summons / Application for Removal of Caveat and Variation of Interlocutory Injunction

Legal Issues

  1. 1 Whether the respondent trustee has demonstrated a sufficient equitable right to maintain the caveat claiming the entire estate in fee simple on a purchase money resulting trust basis
  2. 2 Whether a claim to a purchase money resulting trust over the whole of the land is supported by available evidence
  3. 3 Whether an interlocutory injunction restraining pledging of the land should be varied

Ratio Decidendi

There was insufficient evidence that the bankrupt provided the entire purchase price of the land; at best the evidence supports a possible proportional interest (up to five-sixths), not the whole interest claimed in the caveat. As the specification in the caveat was not reasonably accurate, it must be removed. The injunction restraining pledging of the land was varied from a $1 million to $1.2 million limit to reflect actual indebtedness and operational needs; there was no sufficient reason based on the strength of the trustee's case to refuse this variation.

Court Disposition

Caveat removed; injunction varied

Orders

  • Dean McVeigh to remove caveat T402205D forthwith from Certificate of Title Volume 8769 Folio 698.
  • Order of 31 July 1995 restraining pledging of land as security varied by substituting '$1.2 million' for '$1 million'.