Lord Wilberforce:

This appeal relates to a land dispute between members of a large Chinese family in Malaysia. The land consists of approximately 1,000 acres, included in grants made by the State of Johore numbered 17933, 17934 and 17935 which at the present time is a valuable oil palm estate. The head of the family is Quah Hong Chiam. He had two wives, Lim Phien and the appellant Yew Phaik Hoon. There were 15 children of whom the respondents are two, the first respondent Quah Ooi Keat being a stepson, and the second respondent Quah Ooi Jin a son of the appellant.

Quah Hong Chiam before 1932 was engaged in various enterprises in the State of Johore and in Singapore. His business encountered certain difficulties and in November 1932 he was adjudicated bankrupt by the High Court of the Straits Settlements. Before this bankruptcy it appears that he had occupation rights over the land in dispute which at that time was uncleared jungle land, probably of little value. Not long after the bankruptcy Yew Hun Eng, a brother of the appellant, took charge of the former enterprises of Quah Hong Chiam and reorganised them under the name of the Johore Lumbering Co, whose business included that of felling and selling timber on the oil palm land. In order to provide the necessary finance, mortgages for a total of $13,000 were raised on certain property, which formed part of the estate of the appellant's father. On 24 August 1935 it appears that an agreement was entered into between Yew Hun Eng and the official assignee in Bankruptcy in the Straits Settlements by which Yew Hun Eng obtained an irrevocable power of attorney relating to the disputed lands. This agreement is not in evidence but is mentioned in a later document: the fact that an irrevocable power of attorney was granted must indicate that some payment was either made or promised by Yew Hun Eng to the official assignee in respect of the estate.

On 1 October 1937 Quah Hong Chiam was granted a discharge in bankruptcy suspended for 12 months and shortly after, on 17 October 1937 the three grants, numbered as above, of the lands were obtained from the State of Johore. These grants, produced at the trial, are expressed to be made in consideration of a total payment to the State of Johore of $3,055 but it does not appear either from the grants or otherwise when or by whom or from what source this sum was actually paid. The grants also provided for payment to the State of Johore of annual quit rents amounting altogether to $3,723 and there were attached to the grants special conditions which imposed upon the grantee an obligation to use the land exclusively for the cultivation of oil palms and to bring them under effective cultivation within specified periods. The three grants were made to Quah Hong Chiam as grantee and he on, on 27 December 1937, transferred them to the official assignee. On 13 January 1938 Yew Hun Eng, acting under his irrevocable power of attorney on behalf of the official assignee, transferred the lands to himself. Quah Hong Chiam's discharge in bankruptcy became effective in October 1938 and soon after, cultivation of oil palms started on the lands. They remained in the name of Yew Hun Eng. Notwithstanding the discharge in bankruptcy it appears that Yew Hun Eng remained in charge of Quah Hong Chiam's former business until 1940, when he decided to return to his own residence in Penang. Before he did so, he executed on 29 June 1940 an agreement with the appellant. This agreement recited that Yew Hun Eng owed the appellant $6,000 and provided for the discharge of this debt by credits or payments by Yew Hun Eng. It contained the following clauses which are relevant to the present dispute:-

(1) All businesses of Yew Hun Eng in Kluang and Singapore, purchases of properties etc., in the said places were all undertaken on Yew Phaik Hoon's behalf:

(2) All these are now vested and returned to Yew Phaik Hoon in a satisfactory manner ....

On 9 November 1940 Yew Hun E