Syed Agil Barakbah SCJ:

This is an appeal against the decision of the learned Judge of the High Court, Kota Bharu, who gave judgment in favour of the respondents/plaintiffs in the two civil actions which were heard together pursuant to a Court order for consolidation (the first suit and the second suit respectively). The appellants and the respondents are the beneficiaries of the estate of the late Dato' Haji Abdul Rahim bin Gulam Rasool Shaik (hereinafter called "the deceased"). The first respondent in both suits and the first appellant in the first suit are the co-administrators of the estate. It was common ground that in his life-time the deceased was a successful businessman and the managing director of the Kelantan match factory limited, Kota Bharu (the match factory), of which he owned 300 shares. He had two wives, Aishah Bibi who bore him three children, and Safia Bibi the first appellant and the joint administrator of the estate. The former, who survived the deceased, was domiciled in India but died before the suits were heard. The later is domiciled in Kelantan and bore him eleven children. (see p. 278 of record of appeal part C). The deceased, all the parties in both suits and the other beneficiaries to the estate profess and practise the Islamic religion and belong to the Hanafi school of the Sunni sect.

The two suits arose because of the transfer made by the deceased of 298 of his 300 shares in the Kelantan match factory to four of his children. Prior to the said transfer, the deceased was admitted to hospital in Singapore on 29 September 1966. It was discovered that he had lung cancer. He was discharged on 8 October 1966. Immediately on his return on 9 October 1966 and 11 October 1966 he effected the transfers. For ease of reference, the original shareholders were:

(1) The deceased - 300 shares

(2) Safia Bibi binti Ibrahim Mysoory

(The first appellant in the second suit) - 100 shares

(3) Khalid Abdul Rahim Shaik - 50 shares

(4) Mustak Ahmad Abdul Rahim Shaik (appellant in the first suit) - 50 shares

Total: 500 shares

After the transfer, the following were the shareholders:

(1) The deceased - 1 share

(2) Safia Bibi - 100 shares

(3) Khalid Abdul Rahim Shaik - 100 shares

(4) Mustak Ahmad Abdul Rahim Shaik - 100 shares

(5) Gulam Rasool Abdul Rahim Shaik - 100 shares

(6) Mohamed Iqbal Abdul Rahim Shaik - 98 shares

(7) Yacoob Ahmad Kathrada - 1 shares

Total: 500 shares

(See statement of agreed facts on pp. 155 and 156 of the record of appeal part B). It is to be noted that 50 shares each were transferred to Khalid and Mustak Ahmad in addition to their original shares while the transfers to Gulam Rasool and Mohamed Iqbal were 100 shares and 98 shares respectively. The deceased transferred one share to Yacoob and retained one share to himself. Each share was valued by the deceased at RM1,000. Khalid and Mustak withdrew RM50,000 each from their dividends in the match factory to pay the deceased for their shares. For the shares transferred to Gulam Rasool and Mohamed Iqbal, Safia Bibi issued her own cheque in the sum of RM198,000 in favour of the deceased. Both cheques were dated October 8, 1966, the day the deceased was discharged from hospital in Singapore. The learned trial Judge noted that there was urgency in the withdrawal of the money since the first respondent had to resort to an overdraft facility to pay the deceased, and that the deceased had received the sum of RM298,000 for the sale of 298 of his shares in the Kelantan match factory Limited at RM1,000 per share. That was evidenced by the bank statements and the estate duty questionnaires and assessment exhibited in the record.

Some time in October 1966, the deceased flew to the United Kingdom to see a consultant. After receiving treatment; he returned in December of that year. He died of cancer on 3 May 1967 about four months later and after being bedridden for four weeks and about seven months after the transfer of his shares.

In their amended stateme