As to the operation of RP Act, ss 28U(2) and 45C
5. Per Brereton JA: Section 45C(2) preserves the right of an adverse possessor to acquire title to land brought under the RP Act in a qualified or limited folio by reason of possession for any length of time commencing before the folio's creation. This requires only that adverse possession has commenced by the time the qualified or limited folio is created, and not that the documentary titleholder's cause of action to recover possession has been extinguished by the expiry of the relevant limitation period at that time: [86]-[87].
Refina Pty Ltd v Binnie (2010) 15 BPR ¶28,633; [2010] NSWCA 192, considered; South Maitland Railways Pty Ltd v Satellite Centres of Australia Pty Ltd (2009) 14 BPR ¶26,823; [2009] NSWSC 716, not applied.
6. However, s 45C(2) does not mean that in cases to which s 45C(2) applies, s 45C(1) does not prevent a possessory application under s 45D. Moreover, even if the correct construction is that a s 45D application is permitted in cases to which s 45C(2) applies, presently, s 45D is not satisfied for the reasons above: [88]-[91].
7. The RP Act does not contemplate a primary application based on adverse possession in respect of land which is included in a limited folio which is not also a qualified folio of which another person is the registered proprietor, other than in a case of wrong description of the parcel or its boundaries. The reference in s 45C(2) to limited title is restricted to pre-existing possessory claims to land included in a limited folio by wrong description of the land or its boundaries: [143]-[148].
8. The phrase "by any wrong description of parcels or of boundaries" in ss 28U(2), 42(1)(c), and 118(4)(b) should be regarded as bearing the same meaning. In the context of a limited folio created by the Registrar-General pursuant to a conversion action, there will be a wrong description if the description of the land in the limited folio does not reflect the occupational boundaries, with the result that it includes land in which a person other than the registered proprietor has an existing possessory interest, whether that claim is crystallised or inchoate: [149]-[161].
Michael v Onisiforou (1977) 1 BPR ¶9,356; Hamilton v Iredale (1903) 3 SR (NSW) 535, applied; Sahab Holdings Pty Ltd v Registrar-General (2011) 15 BPR ¶29,627; [2011] NSWCA 395; Quach v Marrickville Municipal Council (No 1) (1990) 22 NSWLR 55, distinguished.
9. Presently, the respondent had been in possession of the Yellow Land to the exclusion of the previous owners of the appellants' property for a period commencing before the limited folio for the appellants' property was created. The occupational boundary was the southern, not northern, side of the Yellow Land, and the respondent had an inchoate possessory interest in the Yellow Land, thus the Yellow Land was incorrectly included in the limited folio for the appellants' property by wrong description of parcels or boundaries. The exception to indefeasibility in s 28U(2) is therefore engaged, as is the exception to the protection of the registered proprietor against proceedings for the possession or recovery of land in s 118(4)(b), while the respondent's ability to enforce his inchoate interest is preserved by s 45C(2): [162]-[166].
10. Per Simpson AJA: The respondent had not acquired possessory title to the Yellow Land at the time of the creation of the limited folio, as the twelve year period necessary to enliven the relevant limitation periods had not yet passed. There was therefore no wrong description for the purposes of s 28U(2) when the limited title issued, hence that exception to indefeasibility did not apply: [200]-[202].
11. However, s 45C(2) has the effect of preserving common law claims to possessory title in respect of adverse possession for any length of time commencing before the creation of the folio, notwithstanding s 45C(1). The primary judge's finding that the respondent's possession commenced prior to the creation of the folio was not challenged on appeal, and therefore the conclusion that s 45C(2) preserved the respondent's common law adverse possession claim was correct: [203]-[210].
12. Per Basten JA, contra: Section 45C(2) appears to allow title to be acquired, despite s 45C(1), by possession commencing before the land was brought under the RP Act, and so the question is whether this provision presently applies. While s 45C(2) places a limit on the exclusive operation of RP Act, Pt 6A, with respect to possessory applications for qualified or limited folios, that provision does not affect the operation of any other provision of the Act. The principle of indefeasibility of title provided for by s 42 remains paramount, and exceptions to that principle should not be readily accepted in the absence of a clear intention to that effect: [34]-[37].
Deguisa v Lynn (2020) 94 ALJR 1020; [2020] HCA 39; Westfield Management Ltd v Perpetual Trustee Co Ltd (2007) 233 CLR 538; [2007] HCA 45, considered.
13. Section 28U(2), which provides an exception to indefeasibility where "by any wrong description of parcels or of boundaries any land is incorrectly included in a limited folio", is the potentially relevant qualification in this dispute. However, the Registrar-General made no mistake when undertaking the September 2005 conversion action. At that time, the respondent had only an inchoate claim to, and no interest in, the Yellow Land, and thus the folio correctly described the appellants' property as including the Yellow Land, subject to the right of way. There is no evidence of any "wrong description" of any kind, nor that the Yellow Land was "incorrectly included" in the limited folio. The transfer to the appellants in 2018 was therefore not subject to any exceptions to indefeasibility, and the orders made by the primary judge must be set aside: [31]-[33], [38]-[40].