SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 MarsdenLR 1785

HIGH COURT MALAYA KUALA LUMPUR
CHAN TSHIAO LI & ANOR – Appellant
Versus
MALCOM FERNANDEZ & ANOR – Respondent
[Writ Summon No: WA-22NCVC-28-01-2023]



Petitioner Advocates:V Sithambaram,Ruebankumar ,Respondent Advocate: Cecil Abraham,Avinder Singh Gill,Rishwant Singh,Mohd Irwan Ismail,Chia Eng Yi

The appointment of Administrators Pendente Lite is essential for managing a deceased's estate during litigation, ensuring neutrality and preserving assets pending the resolution of disputes over the will's validity.

Headnote:(A) Probate and Administration Act 1959 - Section 19 - Appointment of Administrators Pendente Lite - Court appointed administrators to manage the estate of the deceased pending litigation regarding the validity of the will - The estate is valued at RM1.6 billion, with a no-contest clause in the will - Urgent management of estate assets required due to ongoing disputes between plaintiffs and defendants. (Paras 1-5, 30-34, 39-42, 80)

(B) Legal Principles - The appointment of an Administrator Pendente Lite is necessary to preserve estate assets during litigation - Courts have discretion to appoint suitable administrators, preferably neutral parties, to ensure impartial management of the estate. (Paras 30-56)

(C)

Issues: The main issues addressed were the necessity of appointing Administrators Pendente Lite, the identity of the appointees, the requirement for a security bond, the setting of fees, and specific directions for estate management. (Paras 13, 29)

(D)

Findings of Court:
The court found it necessary to appoint Administrators Pendente Lite to manage the estate, emphasizing the need for neutrality in the appointees. The court declined to impose a bond and set forth detailed directives for the administrators' responsibilities. (Paras 39-42, 80) (E)

Ratio Decidendi: The court ruled that the appointment of Administrators Pendente Lite is crucial for preserving estate assets during litigation, and the court must ensure that appointed administrators are neutral parties to prevent conflicts of interest. (Paras 30-56) (F)

Result: The court appointed the administrators and provided specific directions for managing the estate without requiring a security bond. (Paras 80)

Table of Content
1. appointment of administrators pendente lite (Para 1 , 2 , 3 , 4 , 5 , 6)
2. parties involved in the estate dispute (Para 7 , 8 , 9 , 10 , 11 , 12)
3. issues before the court (Para 13 , 18 , 20 , 23 , 24)
4. necessity of preserving estate assets (Para 30 , 31 , 39 , 41 , 42)
5. criteria for appointing administrators pendente lite (Para 44 , 51 , 56)
6. requirement of security or administration bond (Para 59 , 63 , 67)
7. setting fees for administrators pendente lite (Para 70 , 76)
8. final orders of the court (Para 80)
Leong Wai Hong JC:

Introduction

[1] The defendants apply to me for the appointment of Administrators Pendente Lite to administer the estate of Lim Siew Kim, deceased ["Deceased"] and for certain ancillary orders. [See encl 12 Notice of application dated 13 April 2023].

[2] The term Administrator Pendente Lite is Latin for "administrator pending litigation". Such a person is appointed by a Court to manage a deceased's assets until the dispute over the deceased's will is resolved by the Court.

[3] The defendants who are executors of the will of the Deceased dated 28 April 2022 ("Impugned Will") urged me to grant their application urgently as decisions are required to manage the assets pending Court resolution of a dispute over the validity of the Impugned Will with the plaintiffs. In the Supporting Affidavit encl 13 Exhibits L-11 and L-19 and from paras 35 to 36.2.3 the defendants have set out details of funding that they say is urgently required to be paid out from the estate of the Deceased.

[4] The estate of the Deceased is huge by any standards. The plaintiffs say the estimated value of the estate is about RM1.6 billion. The defendants say "if we accept the plaintiffs' valuation of the Estate at RM1.6 billion and the Will is disproved, then the Plaintiffs, together, stand to gain approximately RM799 million." [See encl 29 para 3.6 and encl 33 para 66].

[5] However, I should point out that the Impugned Will of the Deceased has a "No Contest Clause". Such a clause provides that if a beneficiary challenges the will or any of its provisions, the beneficiary forfeits what he or she would have received under the will. Such a beneficiary is "in terrorem" (in fear) of challenging the will lest he or she forfeits his or her inheritance.

[6] A copy of the Impugned Will dated 28 April 2022 can be seen in encl 13 Exhibit L-5. The bulk of the Estate goes to a foundation called Dikim Foundation [70%] and to a son by the name of Marcus Chan Jau Chwen [30%].

The Parties

[7] The Deceased is a daughter of the late tycoon Tan Sri Lim Goh Tong, the founder of the Genting Group of companies. She is also the wife of the late Mr Dick Chan Teik Huat of the accounting firm known as Kassim Chan & Co (now Deloitte).

[8] The 1st plaintiff Chan T'shiao Li and the 2nd plaintiff Kimberley Chan Tshiao Miin are the 2nd and 3rd children (daughters) respectively of the Deceased.

[9] The 1st defendant Malcolm Fernandez of Messrs C. Sukumaran & Co is a lawyer who for many years acted for the Deceased and various companies controlled by the Deceased. The 2nd defendant Chan Mei Yee is the personal assistant of the Deceased for many years.

[10] Both defendants are executors named in the Impugned Will. They are not family members of the Deceased.

[11] The plaintiffs are represented by Messrs Sitham & Associates of No 4-B, Brown Road, 10350, Penang. The two defendants were initially represented by Messrs Avinder Gill Chambers of F-1-11, First Floor, Block F, Pusat Komersil Jalan Kuching, No 115, Jalan Kepayang, Off Jalan Kuching, 51200 Kuala Lumpur.

[12] After the 1st hearing on 18 September 2023 the 2nd defendant changed her solicitors to Messrs Raj, Ong & Yudistra at Suite 50-4-13 & Suite 50-412, 4th Floor, Wisma UOA Damansara, Jalan Dungun, Damansara Heights, 50490, Kuala Lumpur. The 1st defendant continued to be represented by Messrs Avinder Gill Chambers.

Issues Before Me

[13] The issues before me are:

1. Whether I should appoint Administrators Pendente

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top