2016 MarsdenLR 1970
HIGH COURT MALAYA KUALA LUMPUR
LIONG SEOW KENG & ORS – Appellant
Versus
HO SOON CHENG – Respondent
[Originating Summons No: 24NCVC-646-05-2014]
A court may deny a stay of proceedings when it is unjustly oppressive to beneficiaries and orders for asset distribution have been validly made.
Headnote:In the judgment regarding three applications, the court analyzed the circumstances surrounding a will contested by beneficiaries against the defendant, who is the executor. The court addressed statutory provisions for stay of proceedings and determined that the defendant's applications lacked merit, leaning towards beneficiaries' rights and compliance. The court decreed to continue with asset distribution as directed in the previous order, negating the need for a stay, regardless of ongoing discussions regarding the will's authenticity and potential claims against the estate.
Result: 'I allowed encl 26 with costs and dismissed encl 29 and 35, also with costs.'
| Table of Content |
|---|
| 1. reviewing applications in probate and trust matters for beneficiaries. (Para 1 , 2 , 3) |
| 2. executor’s duty concerning will authenticity and beneficiary rights. (Para 11 , 12 , 22 , 27) |
| 3. assessment of delays in distributing estate assets. (Para 32 , 38 , 39 , 44) |
| 4. final orders regarding applications and costs against unreasonable conduct. (Para 63 , 64) |
Introduction
[1] These are my grounds of judgment in respect of three applications namely encls 26, 29 and 35. Enclosure 26 is an application by the plaintiffs to compel the defendant to comply with the order of this court dated 11 September 2014. Enclosures 29 and 35 were filed by the defendant. Enclosure 29 is an application for stay pending appeal against the order dated 11 September 2014. Enclosure 35 is an application for stay of proceedings pending the forensic handwriting examination of the last will and testament of the deceased, which is the subject matter of the present proceedings.
Background
[2] The plaintiffs are the beneficiaries under the last will and testament of Quah Chin Cheng ("the deceased") dated 17 September 2012 ("the will"). The 1st plaintiff is the widow of the deceased. The 2nd to 4th plaintiffs are the sons of the deceased. The defendant was named as the sole trustee and executor under the will. The deceased died on 10 October 2012. The defendant filed an application for Grant of Probate by way of Penang High court Originating Summons No: 32NCVC-10-01-2013 ("the Probate OS"). The Grant of Probate was given on 5 March 2013 and issued on 19 March 2013.
[3] Under cl 8 of the will, the 1st plaintiff was given a sum of RM5,000,000.00 as a gift. Pursuant to cl 5 of the will, one property was specifically bequeathed to the 2nd to 4th defendants in the proportion of one third share each. Pursuant to cl 9 of the will, the residuary estate was bequeathed to the 2nd to 4th plaintiff by way of a trust for sale.
[4] For present purposes, it would suffice to say that for a variety of reasons, the relationship between the plaintiffs and the defendant became acrimonious and bitter. The plaintiffs applied to the court by way of the present Originating Summons which was filed on 2 May 2014 ("the KLOS") for, inter alia, an order that the trust for sale and conversion of the real and personal properties in the residuary estate be terminated and for the same to be transferred in specie to the beneficiaries instead of being sold.
Termination Of The Trust For Sale
[5] On 11 September 2014, the learned Judicial Commissioner granted order in terms of the KLOS and terminated the trust for sale and conversion and ordered the real and personal properties in the residuary estate of the deceased to be transferred to the 2nd to 4th plaintiffs as beneficiaries under the will. The Grounds of Judgment of the learned Judicial Commissioner has been reported as Liong Seow Keng Ors v. Ho Soon Cheng, [2015] 3 CLJ 808.
[6] The Order dated 11 September 2014 reads as follows:
"i) bahawa amanah untuk dijual dan penukaran ("trust for sale and conversion") yang diisytiharkan oleh Quah Chin Cheng, si mati (selepas ini dikenali sebagai "Pewasiat tersebut"), di bawah klausa sembilan diwasiatnya yang bertarikh 17 September 2012 (selepas ini dirujuk sebagai "Wasiat tersebut") ditamatkan dan segala harta-harta alih dan tak alih yang dipegang di bawah ini ("thereunder") oleh ddefendan dipindahmilik kepada plaintif Ke-2. Plaintif Ke-3 dan plaintif Ke-4 dalam bahagian-bahagian yang sama rata;
ii) Bahawa akaun-akaun penuh dan teratur untuk Harta Pusaka tersebut dibekalkan oleh defendan kepada plaintif-plaintif dan/atau peguamcara plaintif-plaintif dalam tujuh hari dari tarikh perintah Mahkamah Yang Mulia ini iaitu tujuh hari dari 11 September 2014;
iii) Bahawa defendan dihalang daripada melantik dirinya dan seorang bernama LIM BIAN CHAI (NRIC NO: 660806-07-5049) (selepas ini dikenali sebagai "Lim Bian Chai" sebagai pengarah-pengarah Cosyland (M) Sdn Bhd (No Syarikat: 565945-T) (se