The Official Trustee in Bankruptcy v Macalindong

The Official Trustee in Bankruptcy brought an application against Macalindong, seeking an order that she convey her interest in a property to the Official Trustee. The property was jointly owned by Macalindong and her former husband. The Official Trustee argued that Macalindong's interest in the property was subject to a trust, as she had sold her equitable share to her former husband when they separated and divorced. The court had to determine whether there was a valid sale and whether the payment made was the consideration for the wife's share in the property.

The primary legal issue was whether the wife had effectively sold her equitable share in the jointly owned property to her former husband. This involved determining if there was a valid agreement between the parties and if the payment made was the consideration for the wife's share. The court also had to consider the application of section 66G of the Conveyancing Act 1919 (NSW), which deals with the appointment of trustees of sale.

The court found that there was a valid agreement between the parties, and the wife had indeed sold her equitable share in the property to her former husband. The payment made was accepted as the consideration for the wife's share, and as such, the wife's interest in the property was subject to a trust. The court concluded that the Official Trustee was entitled to an order for Macalindong to convey her interest in the property to the Official Trustee.

The court ordered that Macalindong convey her interest in the property to the Official Trustee. This was based on the finding that there was a valid sale of her equitable share to her former husband, and the payment made was the consideration for that share. The court's decision was grounded in the application of section 66G of the Conveyancing Act 1919 (NSW).