ACN 063 346 707 Pty Ltd (formerly known as South Passage Pty Ltd) v Douglas James Marshall

In the case of ACN 063 346 707 Pty Ltd (formerly known as South Passage Pty Ltd) v Douglas James Marshall, the primary dispute centred on whether the defendant had engaged in fraudulent activities that led to the misrepresentation of property ownership. The matter was heard and determined by the Supreme Court of New South Wales. The plaintiff, a property company, sought to have certain transactions declared shams and to correct the register of titles to reflect true ownership.

The legal issues at the core of this case were whether the defendant had perpetrated an equitable fraud by engaging in sham transactions and whether the court had the jurisdiction and authority to correct the register of titles to reflect the true ownership of the property. Specifically, the court had to examine the application of the Real Property Act 1900 (NSW), section 138, which provides for the correction of the register in cases of fraud.

The court found that the transactions in question were indeed shams, as they were designed to conceal the true ownership and control of the property by the defendant. The evidence presented demonstrated that the defendant had acted with the intention to deceive and had engaged in conduct that amounted to equitable fraud. The court emphasised the importance of rectifying the register to align with the true ownership, ensuring that the register accurately reflects the interests in the land. The court's decision hinged on its ability to address the fraudulent activities and the implications for the proper administration of justice. Consequently, the court ordered the register to be corrected to reflect the true ownership of the property.