Weston and Cussen as liquidators of Karl Suleman Enterprizes Pty Ltd v Metro Apartments Pty Limited

The case between Weston and Cussen, as liquidators of Karl Suleman Enterprises Pty Ltd, and Metro Apartments Pty Ltd, was heard before the Supreme Court of New South Wales. The liquidators sought to challenge the validity of a caveat lodged by Metro Apartments, which was based on an unstamped instrument. The primary issue before the court was whether the unstamped instrument could create a caveatable interest in land, and if so, what remedy was appropriate if the caveat was found to be good in part and bad in part.

The court was required to determine whether an unstamped instrument could establish a caveatable interest in land, as well as the appropriate remedy when a caveat was partially valid. In addressing these issues, the court considered the principles of Torrens title law, the purpose of stamp duty, and the remedies available for a partially valid caveat. The court held that the unstamped instrument could create a caveatable interest in land, as the primary purpose of stamp duty is to raise revenue, and failure to stamp a document does not necessarily render it invalid or unenforceable.

The court further determined that when a caveat is found to be good in part and bad in part, the appropriate remedy is to grant relief against the invalid portion of the caveat while preserving the valid portion. This approach ensures that the interests of both parties are protected, and the remedy is proportionate to the invalidity of the caveat. The court found that the caveat lodged by Metro Apartments was good in part and bad in part, and accordingly, granted relief against the invalid portion of the caveat while preserving the valid portion. This decision provides guidance to practitioners on the admissibility of unstamped instruments in creating caveatable interests in land and the appropriate remedy for a partially valid caveat in the context of Torrens title law.