Matchlow Pty Ltd v Godfrey Mantle

Matchlow Pty Ltd (the applicant) sought to have a caveat lodged by Godfrey Mantle (the caveator) removed from title. The dispute concerned the applicant's entitlement to a registered mortgage over land owned by the caveator, which the caveator alleged was procured by fraud. The matter came before Iain Campbell Thompson in the Supreme Court of Western Australia.

The primary legal issue before the Court was whether the applicant, as a registered mortgagee, held an indefeasible title to the mortgage despite the caveator's allegations of fraud in its procurement. The Court was required to consider the operation of the *Transfer of Land Act 1893* (WA) and the exceptions to indefeasibility of title, particularly the fraud exception.

The Court reasoned that the indefeasibility provisions of the *Transfer of Land Act 1893* (WA) protect a registered proprietor against claims of title except in cases of fraud. However, the exception for fraud only applies where the fraud is that of the registered proprietor or their agent. In this instance, the alleged fraud was not committed by the applicant or its agent, but by a third party. Therefore, the applicant's registered mortgage was indefeasible, notwithstanding the circumstances under which it was obtained. The Court applied the principle that a registered mortgagee is not affected by latent equities or defects in the title of the mortgagor unless the mortgagee has notice of such defects or is a party to the fraud.

The Court ordered that the caveat lodged by the caveator be removed from the title.