X had mortgaged land to Y before giving a right over it to P. The right was not registered and not overriding. Nevertheless, Y, after repossession, decided to sell to D subject to an understanding that the sale was subject to P’s right. D then claimed that his interest was not subject to P’s right, since P’s right had not been registered and was not an overriding interest. The court found for P, stating that in accepting the contract with Y, D had agreed to hold the right for P on constructive trust and to allow him to deny the right’s validity would be to allow the LRA 1925 to facilitate fraud.- Dillon J
