Law on stolen and recovered cars

[jackute23]

Does anyone know the law (Victoria) on this. My mates Falcon was stolen and and later police contacted him and told him they had found out who stole it. But he couldn't get the car back because the thief sold it to someone who purchased it in good faith.

I used to think stolen property could be seized and returned to it's owner. How can his ownership of the car be removed because it gets stolen and sold?

He was told that he would have to sue the thief (who is apparently some hopeless creep who owns nothing) if he wants compensation, but he still can't get his car back??