This case involves an investment scheme to plant pine trees and about 123 investors owned multiple blocks as tenants in common. Official liquidators had been appointed to sell the land as trustees pursuant to s66G of the Conveyancing Act.
The liquidators had determined the only way to market the land was to sell it one block and sought an order canceling the individual CT’s and issue of a single new one in their name. Some of the parcels had mortgages over them.
Justice Young made the orders sought and noted that the mortgages were thus converted into a claim against the fund that the trustees will raise by selling the land. Once the fund had been created the mortgagees would be granted status of “quasi parties” to argue the division of the fund. Presumably it would take into account the respective value of their former allotments.