JUDGMENT

Adlin Majid J:

A. Introduction

[1] The plaintiffs filed this action for breach of trust and breach of duties against the defendants. The 2nd plaintiff also sought the return of an outstanding amount under a loan given to the 1st defendant.

[2] The 2nd defendant did not enter an appearance, and a judgment in default of appearance was obtained against him on 9 November 2022.

[3] The trial of this action therefore proceeded only in respect of the 1st defendant. The 1st defendant filed a counterclaim against the 2nd plaintiff, seeking unpaid salaries and forfeiture of the amount outstanding under the loan.

[4] The court allowed the plaintiffs' claim and dismissed the 1st defendant's counterclaim. The reasons for the decision are set out below.

B. Background Facts

[5] The 1st defendant and one Lee Lai Peng ("PW4") were co-workers at Surya Resources Sdn Bhd, a company related to the 1st plaintiff's husband.

[6] In 2011, The 1st plaintiff approached PW4 and the 1st defendant (through PW4) to hold shares on her behalf in the 2nd plaintiff, a company involved in the trading of liquor, alcohol, cigars, cigarettes and tobacco related products.

[7] Consequently, a deed of trust dated 28 July 20