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2023 MarsdenLR 1870

HIGH COURT MALAYA PULAU PINANG
ONG LAY KIONG – Appellant
Versus
SIVARAJAN BOOMINATHAN – Respondent
[Originating Summons No:PA-24NCvC-24-01/2023]



Petitioner Advocates:Daphne Choy,Tam Xin Shun,Chenny Lew ,Respondent Advocate: Jegadeeson Thavasu,K Saravana Kumar

A trustee may be removed if found unfit due to actions jeopardizing trust property, reaffirming the validity of the trust and the beneficiary's rights.

Headnote:(A) National Land Code 1965 - Sections 344(2), 417, and 420 - Trustee appointment and removal - Plaintiff sought to discharge the Defendant as Trustee and replace him with another - Court found that the Defendant was unfit due to conduct jeopardizing trust property and had previously admitted to holding property on trust for the Plaintiff. (Paras 1-49)

(B) Trust Law - Validity of trust - Court held that the Defendant acknowledged his role as trustee and the property was not a gift, thus confirming the trust's validity. (Paras 8-14)

(C) Undue Influence - Allegations of undue influence by the Defendant were dismissed as unsubstantiated and inconsistent with previous admissions. (Paras 24-30)

(D) Res Judicata - Previous judgments established the Plaintiff's beneficial ownership and trust validity, barring re-litigation of these issues. (Paras 31-32) (E) Trustee Act 1949 - Court exercised its discretion to remove the Defendant as trustee due to unfitness based on past conduct endangering trust property. (Paras 34-42) (F)

Result: The application was granted, and the Defendant was ordered to vacate the property within 6 months.

Table of Content
1. plaintiff's application for trustee removal. (Para 1)
2. background facts of the trust and property. (Para 5)
3. contentions of both parties regarding the trust. (Para 6 , 7)
4. judicial determination of trust validity. (Para 8 , 9)
5. evidence supporting trust validity. (Para 10 , 11 , 12 , 13 , 14)
6. compliance with national land code. (Para 19 , 20 , 21)
7. undue influence allegations regarding the trust deed. (Para 24 , 25 , 26)
8. application of res judicata. (Para 30 , 31)
9. defendant's unfitness as trustee. (Para 34 , 35 , 38 , 40 , 42)
10. conclusion on trustee removal and property possession. (Para 46)
Anand Ponnudurai J:

Introduction

[1] The Plaintiff commenced this present Originating Summons seeking the following relief:

"(1) that the Defendant abovenamed Sivarajan A/L Boominathan (NRIC No 790721-07-5467) be discharged and removed as the Trustee under the Trust Deed dated 5 March 2015 immediately;

(2) that Yap Kah Heng (NRIC No 691012-08-5837) be hereby appointed as the Trustee under the Trust Deed dated 5 March 2015 in substitution of the Defendant abovenamed;

(3) that the property known as Hakmilik Strata No Hakmilik GRN 46099/M1/16/240, No Petak 240, No Tingkat 16, No Bangunan M1, Lot 4715, Seksyen 5, Bandar Georgetown, Daerah Timur Laut, Pulau Pinang bearing assessment address No 1-16-10, Greenlane Heights, Lintang Gangsa 11600 Pulau Pinang (hereinafter referred to as "the said property") be vested in Yap Kah Heng (NRIC No 691012-08-5837) as Trustee and held in trust for Ong Lay Kiong (Australian Passport No PB6159472 (new)/E 4096543 (old));

(4) that the Defendant abovenamed Sivarajan A/L Boominathan (NRIC No 790721-07-5467), his representatives and/or agents do deliver vacant possession of the property known as Hakmilik Strata No Hakmilik GRN 46099/M1/16/240, No Petak 240, No Tingkat 16, No Bangunan M1, Lot 4715, Seksyen 5, Bandar Georgetown, Daerah Timur Laut, Pulau Pinang bearing assessment address No 1-16-10, Green lane Heights, Lintang Gangsa 11600 Pulau Pinang within 60 days from the service of the sealed Order hereof which shall be effected by posting a copy of the same on the front entrance of the said premises;

(5) that the Registrar of the Penang Land Registry or any relevant party or authority is hereby empowered and authorized to vest the property known as Hakmilik Strata No Hakmilik GRN 46099/M1/16/240, No Petak 240, No Tingkat 16, No Bangunan M1, Lot 4715, Seksyen 5, Bandar Georgetown, Daerah Timur Laut, Pulau Pinang together with the premises bearing assessment address No 1-16-10, Green lane Heights, Lintang Gangsa 11600 Pulau Pinang in the name of Yap Kah Heng (NRIC No 691012-08-5837) pursuant to ss 417 and 420 of the National Land Code, 1965 upon being served with a sealed copy of the Order given herein;

(6) that upon vesting, leave be given to Yap Kah Heng (NRIC No 691012-08-5837) to sell the property known as Hakmilik Strata No Hakmilik GRN 46099/M1/16/240, No Petak 240, No Tingkat 16, No Bangunan M1, Lot 4715, Seksyen 5, Bandar Georgetown, Daerah Timur Laut, Pulau Pinang together with the premises bearing assessment address No 1-16-10, Green lane Heights, Lintang Gangsa 11600 Pulau Pinang, whether with vacant possession or otherwise;

(7) that upon the Plaintiff's receipt of the net proceeds of sale of the said Property, the Trust Deed dated 5 March 2015 shall come to an end and be dissolved;

(8) that the Deputy Registrar of this Honourable Court is hereby authorized to sign on behalf of Sivarajan A/L Boominathan (NRIC No 790721-07-5467) any document relating to the vesting of the said Property in the name of Yap Kah Heng (NRIC No 691012-08-5837) in the event the said Sivarajan A/L Boominathan fails to do so upon being given seven (7) days' notice."

[2] The Defendant resisted the application and parties thereafter exchanged several affidavits. This matter was then fixed for hearing on 18 May 2023 with the customary directions for written submissions which were duly filed by the parties. Howev

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