Harden Shire Council v Richardson

The case between Harden Shire Council and Mr. Richardson was heard in the Supreme Court of New South Wales. The central dispute revolved around the sale of a parcel of land by the Harden Shire Council, which was executed due to unpaid rates. Mr. Richardson, the defendant, had purchased the land in 1998 under a false name and had misled the council into believing that he was merely a tenant rather than the actual owner. Following a public auction, the land was sold with a contract condition stipulating that the council would provide vacant possession to the purchaser upon completion of the sale. However, Mr. Richardson refused to surrender possession of the land, prompting the council to seek a court order for possession.

The legal issues that the court had to address included the validity of the sale process under sections 713 and 715 of the Local Government Act 1993, the council's entitlement to possession of the land, and whether Mr. Richardson was required to surrender possession before the registration of the transfer. Additionally, the court had to consider the implications of sections 60 of the Real Property Act 1990 and 109 of the Conveyancing Act 1919 in this context. The court determined that the council was entitled to vacant possession of the land and that Mr. Richardson was required to surrender possession before the registration of the transfer.

The court ruled that the sale process was valid, notwithstanding the council's rejection of a partial offer made by Mr. Richardson on the eve of the auction, which did not constitute non-compliance with section 715(2)(b) of the Local Government Act 1993. The court also found that the council had an implied entitlement to obtain possession under the Local Government Act 1993. Consequently, the court granted judgment for possession in favour of the council, with leave to issue a writ of possession forthwith. This decision underscores the council's right to enforce the sale of land for unpaid rates and the necessity for the purchaser to comply with the conditions of the sale.