An Indigenous elder has temporarily prevented the sale of Caloola Farm, after claiming a form of native title over the land.
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The Caloola Farm in the Naas Valley, south of Tharwa, is typically used as a recreational retreat, including for disadvantaged groups, and has a large function centre, commercial kitchen and bunk houses.
It has been used by religious groups and charitable and community organisations.
But the leaseholder, Auswide Services, recently went into liquidation, and the liquidator put the 170-hectare property on the market in March.
An offer has been made, but the sale of the land has been challenged by Ngambri elder Shane Mortimer, who says the land cannot be sold off to repay debts.
Mr Mortimer is invoking allodial title, described as a common law native title, to claim the land on behalf of his people. He wants to use the site for foster children and as emergency accommodation to help disadvantaged sections of the community.
He launched ACT Supreme Court action, representing himself, and appeared before Justice Richard Refshauge briefly on Friday morning.
Justice Refshauge has ordered an interim injunction to prevent the sale of the land until at least early June. That time will be used by the liquidator to respond to Mr Mortimer's argument and put evidence before the court.
Barrister for the liquidator Jason Moffett said he would argue Mr Mortimer has no standing to challenge the sale. Mr Moffett also told the court there was a question about whether native title could be claimed on the land, given the Commonwealth had been granted "fee simple", or permanent and absolute tenure.
Mr Mortimer said that "fee simple" did not extinguish his people's right to allodial title.
Justice Refshauge urged Mr Mortimer to seek legal advice. The judge said he was required to administer a set of laws that Mr Mortimer might neither acknowledge nor respect.
Justice Refshauge told Mr Mortimer he might need to take the case to the High Court.
He warned that plaintiffs could become liable for damages if they held up a sale through an injunction, but then lost the case. That could leave a plaintiff with a "significant impost".
Mr Mortimer is also arguing the land, which is on a charitable concessional lease, can not be sold to recover a debt.
In March, a spokeswoman for ACT Environment and Planning said a concessional lease was a type of Crown lease, which could be sold like any other type of lease.
The case will return to court on June 2.
