Ippin Textiles Pty Ltd v Winau Aust Pty Ltd

The dispute in *Ippin Textiles Pty Ltd v Winau Aust Pty Ltd* concerned the validity of registered mortgages over land held under the Torrens system. The applicant, Ippin Textiles Pty Ltd, sought to appeal a decision concerning these mortgages, which had been procured by a fraudster who purported to act on behalf of the mortgagor. The appeal was heard in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the registered mortgages, despite being executed and registered due to fraud, could properly be construed to secure anything against the mortgagor's land. Further, the Court had to determine the legal effect of an acknowledgment of receipt of payment within a registered mortgage, and whether an unregistered document could be incorporated by reference into a registered mortgage, particularly where the registered mortgage contained a special condition excluding unregistered documents found to be void.

The Court reasoned that while an acknowledgment of receipt of payment in a registered mortgage is prima facie evidence of receipt, this presumption yields to the facts as proved. In this instance, no advance was actually made to the mortgagor due to the fraudster's intervention. The Court also considered the incorporation of unregistered documents, finding that a special condition within the registered mortgage explicitly excluded such incorporation where the unregistered document was void. As the unregistered document in question was void due to fraud, it could not be incorporated into the registered mortgage.

Ultimately, the Court of Appeal granted leave to appeal but then dismissed the appeal with costs.