Iceland Properties Pty Ltd v Palta

Iceland Properties Pty Ltd sought the removal of a caveat entered by Palta over certain property. Palta claimed an interest in the property as the chargee under a purported loan agreement. Iceland Properties alleged that the purported loan agreement was a forgery and sought the removal of the caveat on this basis. The court had to decide whether there was a probability that Palta had the asserted equitable rights or interest sufficient to justify the effect of the caveat, and whether the balance of convenience favoured the removal of the caveat.

The court considered whether the evidence presented indicated a probability that Palta would be found to have equitable rights or interest in the property. Palta conceded that the purported loan agreement was a forgery on the third day of the hearing. The court concluded that there was no probability of Palta having the asserted rights or interest and that the balance of convenience favoured the removal of the caveat. The court found that the lower risk of injustice lay in ordering the removal of the caveat.

The court also considered whether the unusual circumstances of the case warranted an award of indemnity costs. Palta had resisted the removal of the caveat based on the forged document, and the forgery was readily apparent. Additionally, allegations of forgery were subsequently made against a director of the registered proprietor. The court determined that the unusual circumstances justified the award of indemnity costs.

Iceland Properties was granted the removal of the caveat, and Palta was ordered to pay the costs of the proceeding on an indemnity basis.