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2025 MarsdenLR 3806
HIGH COURT MALAYA TAIPING
KR THIAGARAJAN & ANOR – Appellant
Versus
KARUPPAN CHETTIAR VAIRAVAN @ SOMASUNDARAM @ KR SOMASUNDARAM SM KR KARUPPAN .... – Respondent
[Originating Summon No: AB-24NCVC-190-07/2024]
Beneficiaries of an estate have a right to interim distribution of compensation even before full administration is complete, emphasizing the court's duty to prevent injustice.
Headnote:(A) Land Acquisition Act 1960 - Section 29 - Courts of Judicature Act 1964 - Section 25A - Distribution of estate - Plaintiffs sought distribution of compensation for two pieces of land acquired by the Government, claiming entitlement as beneficiaries of the estate - Defendant, as administrator, delayed distribution for over 27 years, citing incomplete administration - Court emphasized the need to protect beneficiaries' welfare and granted interim distribution to prevent injustice. (Paras 19, 38, 41)
(B) Beneficiaries' Rights - The court ruled that beneficiaries have a right to their share of the estate even before full administration, countering the Defendant's claim that they had no interest until the estate was fully wound up. (Paras 22, 24, 38)
Facts of the case:
The Plaintiffs are beneficiaries of the estate of the deceased, seeking RM542,713.68 from compensation for two pieces of land acquired by the Government. The Defendant, the estate's administrator, has delayed distribution for over 27 years. (Paras 8, 11, 19)
Findings of Court:
The court found that the Defendant's delay in administering the estate was unjustified and that the Plaintiffs were entitled to an interim distribution of the compensation. (Paras 38, 41)
Issues: The main issues were whether the Plaintiffs, as beneficiaries, were entitled to an interim distribution of the estate's compensation and the Defendant's justification for the delay in administration. (Paras 22, 38)
Ratio Decidendi: The court held that beneficiaries have a right to their share of the estate even before full administration is complete, emphasizing the need for timely distribution to prevent injustice. (Paras 22, 38)
Result: The application was partly allowed with costs to be borne by the Defendant personally.
JUDGMENT
Introduction
[1] This is an appeal against the decision of this Court delivered on 4 February 2025 whereby the the Court decided the Plaintiffs' application in the Originating Summons (OS) No AB-24NCVC-190-07/2024 encl 1 mostly in their favour, and ordered that costs of RM10,000.00 to be borne by the Defendant personally and not from the estate of the deceased, RM.M.SM Karuppan Chettiar @SM KR Karuppan Chettiar @ SM.KR.Karuppan Chettiar Son Of Somasundaram Chettiar@ SM.KR. Karuppan Chettiar S/O Somasundaram Chettiar (the said Deceased).
[2] The OS was filed on 4 July 2024 and parties had been given the opportunity to file their respective replies and then written submissions, accordingly. During an e-review case management before me to fix the hearing date for encl 1, parties agreed for the matter to be heard on 12 December 2024 but on 11 December 2024, the eve of the hearing date, Messrs. K. Thushani & Co (second solicitor) wrote to the Court requesting for the hearing to be postponed as they had just been appointed. The Plaintiffs' solicitors objected to the application, and the Court did not allow it because all the cause papers and submissions had already been filed by Messrs. Ven & Associates (first solicitor). Thus, the hearing went on in the afternoon of 12 December 2024, instead, and she relied on the written submissions that were filed by the first solicitor. The decision date was fixed for 16 January 2025 with the agreement of both solicitors.
[3] However, on 10 January 2025, encl 22 was filed to bring in third parties into the suit. The Notis Kebenaran Untuk Mengeluarkan Notis Kepada Pihak Ketiga was filed by the Defendant's third solicitor (Messrs. Nagarajan Peri &Co). They requested for the hearing of encl 22 to be conducted on the same date of the decision. On 16 January 2025, the Court heard the preliminary objections raised by the Plaintiffs' solicitors in regard to the last-minute application filed by the Defendant's counsel. The intended third parties were solicitors and law firms who had acted upon the Defendant's instructions in some conveyancing matters concerning the lands (subject-matter of the OS) and also his first solicitor Messrs. Ven & Associates. After hearing the submissions by both sides, the Court adjourned for decision to 4 February 2025 wherein on that date, the Court dismissed encl 22 with no order as to costs because a third-party proceeding may be a separate cause of action pursued against them. The Court then proceeded to pronounce its decision on encl 1 by partly allowing it. Hence, the present appeal.
[4] For the record, the Defendant changed solicitors 3 times within the span of a few months (including the re-appointment of the first solicitor, Messrs. Ven & Associates, who filed a Notice Pertukaran Peguam in March 2025, Encl 37)! They filed the Notice of Appeal to the Court of Appeal on 3 March 2025 and recently a fourth solicitor (Messrs. R Raja Gopal & Co) has filed a Notis Pertukaran Peguam, representing the Defendant in the appeal.
The Cause Papers
[5] The cause papers filed were as follows:
(a) Originating Summons dated 4 July 2024 (Encl 1);
(b) Plaintiffs' Affidavit in Support affirmed on 17 June 2024 (Encl 2);
(c) Defendant's Affidavit in Reply affirmed on 17 July 2024 (Encl 5);
(d) Plaintiffs' Affidavit in Reply affirmed on 1 August 2024 (Encl 6);
(e) Defendant's Affidavit in Reply (2) affirmed on 20 August 2024 (Encl 7); and
(f) Plaintiffs' Affidavit in Reply (2) affirmed on 2 September 2024 (Encl 8).
[6] I have taken the background facts from the cause papers filed by both parties and from the written submissions which have aptly summarised the case for both sides. But before that, in a previous suit before this Court in Originating Summons No AB-24NCVC-105-07/2023 (previous OS), involving the same parties, they had agreed to record a Consent Order on 24 January 2024 without admission of liability. This concerned 4 other pieces of lands
