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2023 MarsdenLR 449

HIGH COURT MALAYA PENANG
TEOH TEONG HUP & ORS – Appellant
Versus
TEOH KAK LIN & ORS – Respondent
[Originating Summons No: PA-24NCvC-611-07/2022]



Petitioner Advocates:John Kan Yet Han,Khairina Abdul Malik ,Respondent Advocate: Elson Beh Hong Shien

Partnerships dissolve upon a partner's death, and surviving partners may continue winding up affairs without appointing a receiver unless justified.

Headnote:Section 35(1) of the Partnership Act 1961 provides dissolution of a partnership upon the death of a partner. The plaintiffs sought a declaration for dissolution and account settlement post their father's death. The court found no need for a declaration since the partnership was already dissolved as of 4 February 2017. The defendants had sufficiently managed the partnership's affairs and were not required to appoint a receiver. The plaintiffs were required to facilitate settlement of accounts, and costs were awarded to defendants. The final outcome is the dismissal of the Originating Summons.

Table of Content
1. origins of the claim. (Para 1 , 2 , 3)
2. plaintiffs' sought orders and defendants' opposition. (Para 4 , 5 , 6)
3. context regarding partnership and familial relations. (Para 7 , 10 , 12 , 13)
4. dissolution upon the death of a partner. (Para 21 , 22 , 26)
5. access and management of accounts. (Para 45 , 71 , 72)
Quay Chew Soon J:

Introduction

[1] The plaintiffs' filed this Originating Summons dated 5 July 2022 ("OS") as the executors of the estate of Teoh Kang Huat ("plaintiffs' father"). Teoh Kang Huat was the father of the plaintiffs.

[2] The OS seeks several reliefs against the defendants in respect of the partnership known as Ah Phong Kilang Papan ("Partnership"). In particular, the appointment of a receiver and manager to take over the management of the Partnership and to carry out the dissolution of the affairs of the Partnership.

[3] On 16 January 2023, I dismissed the OS. Here are the grounds of my decision.

The Originating Summons

[4] Vide the OS, the plaintiffs prayed for the following:

"(i) suatu deklarasi bahawa Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M)) telah dibubarkan pada 4 Februari 2017;

(ii) Defendan-defendan sama ada mereka sendiri atau ejen-ejen atau wakil- wakil atau pekerja-pekerja mereka dihalang untuk menjalankan sebarang perniagaan dan urusan di bawah Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M)) sementara menunggu penentuan muktamad Saman Pemula ini;

(iii) seorang penerima dan pengurus dilantik oleh plaintif-plaintif untuk tujuan mengurus perkara-perkara tertunggak, memegang dan menyemak salinan- salinan asal penyata-penyata Bank, buku-buku akaun, penyata-penyata kewangan, penyata-penyata akaun, asset, harta dan lessen-lesen yang dipegang oleh Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M)) serta dokumen-dokumen yang relevan kepada Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M)), dan memegang kunci-kunci serta diberi akses kepada harta-harta dan hartanah-hartanah perkongsian tersebut, sementara penentuan muktamad Saman Pemula ini;

(iv) Defendan-defendan sama ada mereka sendiri atau ejen-ejen atau wakil- wakil atau pekerja-pekerja mereka dihalang secara berkekalan untuk menjalankan sebarang perniagaan dan urusan di bawah Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M));

(v) seorang penerima dan pengurus dilantik oleh plaintif-plaintif untuk tujuan menggulung hal ehwal Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M));

(vi) Defendan-defendan, dalam tempoh 7 hari dari tarikh Perintah ini mengemukakan salinan-salinan asal penyata-penyata Bank, buku-buku akaun, penyata-penyata kewangan, penyata-penyata akaun, senarai asset dan harta dan lessen-lesen yang dipegang oleh Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M)) serta dokumen-dokumen yang relevan kepada Ah Phong Kilang Papan (No. Pendaftaran: 197703030913 (000428795-M)) dan bahawa plaintif-plaintif dan/atau sesiapa yang plaintif-plaintif lantik mempunyai kebebasan untuk memeriksa dan meneliti dokumen-dokumen yang dikemukakan demikian, dan untuk membuat nota berkenaan kandungan-kandungannya, dan berhak untuk diberikan salinan-salinan baginya;"

[5] In essence, the plaintiffs seek the following orders:

(a) a declaration that the Partnership has been dissolved as at 4 February 2017;

(b) a receiver and manager be appointed by the plaintiffs for the purposes of winding up the affairs of the Partnership; and

(c) the defendants shall disclose original copies of bank statements, books of accounts, financial statements, statements of accounts, list of assets and properties, licenses and all relevant documents held by the Partnership.

[6] The defendants oppose the OS on the following grounds:

(a) There were already actions taken to dissolve the Partnership;

(b) The delay in the dissolution of the Partnership was brought upon by the plaintiffs;

(c) There is no evidence of any wrongdoings committed by the defendants that warrant

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