Loke Yew v Port Swettenham Rubber (1913) AC 491

A person held a large parcel of land, and sold it to a company.
The company was aware that there was an unregistered interest on the land
The UR interest existed as long as the UR owner paid rent
The owner of the land was concerned for the UR owner, and the company induced the owner to sell and signed a document stating they would make arrangements to purchase his smaller parcel of land.
They then became the owner of it all and sought possession of the smaller, UR interested without offering to purchase.
The UR owner said they had acted fraudulently, however the company argued it was indefeasible and that no fraud had occurred.

Indefeasibility; whether a registered title was indefeasible where it was obtained by the fraud of the purchaser
Was it fraud how the company induced the man?

The new owners were ordered to register the land on the basis they had purchased with fraud and misrepresentation
The Act provided a registered owner’s interest would be indefeasible except in fraud, and the true conclusion was the company lied and fraudulently made a representation they did not keep.
If it were not for that, the original owner would not have sold it.
The Court examined the purchase price of the land that did not include the UR interest, they said the inference was obvious.
The court therefore concluded that this fraud brought the transfer of the land within the exceptions and ordered rectification. The purchaser had more than just mere knowledge; they had actually induced the conduct.
They cannot rely on their fraudulent security to protect them.