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2020 MarsdenLR 3226

HIGH COURT MALAYA SHAH ALAM
ZAHARI ZAINAL ABIDIN & ANOR – Appellant
Versus
JULIAH MOHD HASSAN – Respondent
[Civil Suit No: BA-22NCvC-624-10/2017]



Petitioner Advocates:Iskandar Putra Ishak,Amizaizul Izral Amran ,Respondent Advocate: Dato' Akberdin Hj Abdul Kader,Harjinder Singh Sandhu

An assignment made by an elderly individual suffering from Alzheimer's disease is deemed void due to lack of mental capacity and presumed undue influence from a family member in a position of trust.

Headnote:(A) Contracts Act 1950 – Sections 10(1), 11, and 12(1) – Statutory Declarations Act 1960 – Section 2 – Mental Health Act 2001 – Section 58 – Testamentary capacity – Assignment executed by elderly individual who is mentally incapable due to Alzheimer's disease is declared void ab initio as individual lacked capacity to contract. (Paras 51, 34)

(B)

Undue influence – The defendant, as administratrix of the estate and family member, is deemed in a position to dominate the will of the elderly individual, who lacked mental competency, leading to a presumption of undue influence regarding the assignment. (Paras 45, 51)

(C)

Credibility of witnesses – The court favored the expert opinion establishing lack of capacity over self-serving testimonies from family members. (Paras 26, 27)

(D)

Limitation Act – The suit is not time-barred due to the plaintiff’s disability as per legal provisions. (Paras 28-29) (E) Court's decision – Declaration made validating the plaintiff’s claims and setting aside the assignment with costs ordered against the defendant. (Paras 52)

JUDGMENT

Wong Kian Kheong J:

(After Trial)

A. Introduction

[1] This judgment discusses the validity of an assignment, statutory declaration (SD) and affidavits signed by a person of more than 84 years old who is confirmed by a neurologist to be suffering from Alzheimer's disease.

B. Background

[2] Puan Hasnah Binti Baba (Puan Hasnah) is the mother of the late Encik Mohamed Zubir Bin Zainal Abidin (Deceased).

[3] The Deceased drowned on 22 July 2007 and left an estate consisting of, among others, real properties, sports cars, shares in various companies, fixed deposit accounts and various unit trusts (Estate).

[4] The defendant (Defendant) is the wife of the Deceased and the administratrix of the Estate. During the Defendant's cross-examination of at the trial of this case, the Defendant testified that the total value of the Estate is about RM45 million.

[5] On 15 May 2008, the Selangor Syariah High Court has issued a "Sijil Faraid" which stated that Puan Hasnah is entitled to one-sixth (1/6) of the Estate [Puan Hasnah's Entitlement (Estate)].

[6] This action is initially filed by Puan Hasnah against the Defendant (This Suit) on the ground that the Defendant, as the Estate's administratrix, should have distributed one-sixth of the Estate to Puan Hasnah in accordance with Puan Hasnah's Entitlement (Estate).

[7] This Suit is opposed by the Defendant on the ground that Puan Hasnah has previously signed an agreement with the Defendant on 28 April 2009 wherein Puan Hasnah has purportedly assigned all her beneficial and equitable rights in the Estate to the Defendant in consideration of Puan Hasnah's natural love and affection for the Defendant (Assignment).

[8] The Defendant applied in Court enclosure no 7 to strike out This Suit based on, among others, the Assignment (Encl 7).

[9] Enclosure 7 was allowed with costs by Akhtar Tahir J (Striking Out Order).

[10] Puan Hasnah appealed to the Court of Appeal against the Striking Out Order (Appeal).

[11] The Court of Appeal allowed the Appeal with costs and remitted This Suit for trial in this Court ( CA 's Order). The Defendant did not apply to the Federal Court for leave to appeal against 's Order.

[12] After CA 's Order was made, I took over this Court. Hence, the trial of This Suit (Trial) proceeded before me.

[13] After the conclusion of the Trial but before the delivery of its decision, Encik Zahari Bin Zainal Abidin (Encik Zahari), one of the sons of Puan Hasnah, applied in Court enclosure no 68 (Encl 68) for the following two orders:

(1) an order for Encik Zahari to be appointed as Puan Hasnah's litigation representative for This Suit under O 76 rr 2 and 3 of the Rules of 2012 (RC); and

(2) an order to appoint a committee consisting of Encik Zahari and Encik Zaharim Bin Zainal Abidin, another son of Puan Hasnah (Encik Zaharim), to manage the Plaintiff's affairs and estate [Committee (Puan Hasnah's Affairs)] pursuant to s 58 of the Mental Health Act 2001 ( MHA ).

[14] The Defendant had resisted Encl 68. However, I have allowed Encl 68 with costs to be paid by Puan Hasnah's estate to the Defendant [Decision (Encl 68)]. The written judgment for the Decision (Encl 68) is available at [2020] 4 MLRH 158, [2020] 4 AMR 588.

C. Evidence In Support Of This Suit

[15] The following four witnesses testified for Puan Hasnah in the Trial:

(1) Dr Azmi Bin Abdul Rashid (SP1);

(2) Encik Mohammad Zahar Bin Zainal Abidin (SP2);

(3) Encik Zaharim; and

(4) Encik Zahari.

[16] SP1 is a consultant neurologist at Damansara Specialist Hospital. According to SP1, among others-

(1) SP1 graduated from "Universiti Sains Malaysia" with a medical degree in 1987. SP1 obtained a Masters degree in "Internal Medicine" in 1995. From 1995 to 2000, SP1 underwent training in the field of neurology in Malaysia and abroad. SP1 has been practicing as a consultant neurologist since 2000;

(2) SP1 examined Puan Hasnah on 4 October 2007 (1st Examination) and 28 August 2008 (2nd Examination);

(3) in the 1st Examination-

(a) a "CT Scan" has been conducted on P


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