NSW Trustee and Guardian v Obeid

The case before the court involved the NSW Trustee and Guardian, as the applicant, seeking an interlocutory injunction against Obeid to restrain him from dealing with real property. The applicant alleged that Obeid, as the registered proprietor, was subject to an equitable claim which he had no notice of, and that his indefeasible title was vulnerable as a volunteer. The court was tasked with determining whether the applicant had established a serious question to be tried and if an interlocutory injunction should be granted.

The primary legal issues revolved around the applicant's ability to prove an equitable claim against Obeid, which would render his title vulnerable. The applicant needed to demonstrate that Obeid was a volunteer, meaning he had no prior connection to the property or the transaction, and that he had no notice of the equitable claim. The court also had to assess whether the applicant had raised a serious question to be tried and if the balance of convenience favoured the grant of an interlocutory injunction.

In delivering the judgment, the court considered the evidence presented and the principles of equity. It found that the applicant had indeed raised a serious question to be tried regarding Obeid's equitable claim, and that Obeid's title was vulnerable as he was a volunteer. The court further determined that the balance of convenience favoured the grant of an interlocutory injunction, as the applicant had shown that the equitable claim was likely to succeed, and there was a risk of prejudice if the injunction was not granted. Consequently, the court ordered the interlocutory injunction to be issued, restraining Obeid from dealing with the real property until the matter was resolved at trial.