A plaintiff must provide substantial evidence for trust arrangements and prove serious questions to be tried for injunctive relief; mere allegations are insufficient.

JUDGMENT

Ahmad Fairuz Zainol Abidin J:

Introduction

[1] This is an application for injunctive reliefs vide encl 12 by the Plaintiff. The reliefs sought were in the nature of restraining and mandatory orders pertaining to the operations of a 4D forecast business. The licence is currently in the name of the 2nd Defendant while the operations of the betting agency being run by the 4th Defendant.

[2] The application also included an order for accounts to be rendered by the 2nd Defendant for all monies received from the operations of the 4D forecast business.

[3] This court dismissed the application. These are the reasons for the court's dismissal of the application.

Background Facts

[4] Sometime in the year 1969, the late Neo Chwee Yeen ("late Neo") obtained an agent licence to operate a number forecast betting games business issued by the Ministry of Finance ("Agent Licence"). The 2nd Defendant is the daughter of the late Neo.

[5] After the procurement of the Agent Licence, the late Neo then offered to the Plaintiff and eight (8) other individuals, Wong Kok Sing, Heng Chew Hoong, Tan Boon Thiam, Peh Boon San, Chai Chin Kim, Yong Chow Fatt, Ong Teng Pui and Mr Lim (hereinafter collectively referred to as "the said Partners") to form a partnership in the business named Syarikat ENE Jalan Klang, Kuala Lumpur ("the said Partnership").

[6] Subsequently, the Empat Nombor Ekor (Selangor) Sdn Bhd offered Magnum Shares to the late Neo as one of the pioneer agents. After the late Neo accepted the offer by Empat Nombor Ekor (Selangor) Sdn Bhd, the late Neo then offered the ownership of the said Magnum Shares to the 4th Defendant and later registered in the name of the late Neo and Wong Kok Sing.

[7] In 1981, two individuals of the said Partnership, ie Ong Teng Pui and Mr Lim voluntarily exited the said Partnership.

[8] The 4th Defendant was incorporated on 12 March 1981. The principal activity of the 4th Defendant was to act as an agent of M4D (Selangor) Sdn Bhd The 4th Defendant took over the business of the said Partnership with effect from 13 March 1981. Thereon all commission obtained from the 4D forecast betting business was deposited into the 4th Defendant's banking account and formed as the principal revenue of the 4th Defendant.

[9] In 1983, the 4th Defendant's Board of Directors offered and granted ordinary shares of RM1 each to former Partners to the said Partnership (except the two (2) individuals who had exited from the said Partnership).

The Plaintiff's Case

[10] The Plaintiff disputes the sole ownership of the Agent Licence as he contends that the Agent Licence was held on a trust arrangement.

[11] In essence, the Plaintiff claims that the trust arrangement refers to an agreement between the said Partners to operate the 4D forecast betting business.

[12] The material terms of the trust arrangement are that the late Neo will secure the Agent Licence in his name and the profits obtained from the business will be then distributed to the all the said Partners.

[13] It was further contended that the Agent Licence cannot be transferred to any third party unless with the consent of the said Partners.

[14] On or about 2004, the Plaintiff alleged that there was a significant drop in the commission received from the 4D forecast betting business and which was deposited into 4th Defendant's banking account.

[15] The Plaintiff subsequently discovered the following:

a) The transfer of the Agent Licence from the late Neo to the 2nd Defendant; and

b) The diversion of the profits received from the 4D forecast betting business to Lik Ho Sdn Bhd ("Lik Ho").

[16] The crux of the application rests on the ownership of the Agent Licence. The Plaintiff alleged that the said Partners entered into a trust arrangement to obtain a licence. It was contended that:

(a) All members of trust arrangement contributed equally to pay the necessary fee to procure the Agent Licence;

(b) The shares issued by Empat Nombor Ekor (Selangor) Sdn Bhd were registered in the name of both the late