In Bahr v. Nicolay (No. 2) (1988) 164 CLR 604, the High Court of Australia addressed significant aspects of property law under the Torrens system, particularly focusing on the principle of indefeasibility of title and its exceptions, notably fraud. The plaintiffs, the Bahrs, entered into a contract that granted them an equitable interest in the property, specifically a right to repurchase it. This case intricately examined whether such equitable interests could be maintained against the registered proprietors, the Nicolays, who acquired the land under conditions acknowledging the Bahrs' rights, hence raising the question of whether a right in personam could effectively bind registered proprietors. The Court’s decision underscored the balance between protecting the integrity of the Torrens system and ensuring fairness by recognising and enforcing equitable rights against those who, despite registration, have expressly or impliedly acknowledged such rights. Thus, reinforcing the notion that the principle of indefeasibility does not provide a shield for fraudulent or unconscionable conduct and confirming the potential for equitable rights to impose personal obligations on registered proprietors.
Full text: https://jade.io/article/67416
From the TLDR Caselaw Archive