Legal professionals can face discipline for misconduct beyond direct professional actions, emphasizing the importance of maintaining integrity within the profession.

[1] This appeal was heard by this court on 30 August 2017 wherein the court reserved judgment. We now deliver below our decision and judgment.

Background Facts

[2] The 1st and 2nd appellants were ordered to be struck off the Rolls of Advocates and Solicitors by the Disciplinary Board at the conclusion of disciplinary proceedings taken against them under the Legal Profession Act 1976 [ LPA ]. Their appeals to the High court and court of Appeal were dismissed.

[3] The pertinent facts leading up to the disciplinary proceedings being commenced against the 1st and 2nd appellants are elucidated from the grounds of the learned High court Judge:

[1] Kanawagi is the father of Dinesh and both were then partners of Messrs Khana & Co (Khana & Co).

[2] The respondent is the complainant in the disciplinary proceedings taken by the DB against Kanawagi and Dinesh (appellants). The complaint was made by the respondent on behalf of one Saling bin Lau Bee Chiang, an Orang Asli from Kota Tinggi Johor, a beneficiary of the Lembah Linggui Valley Trust Fund (Trust Fund).

[3] Saling and other Orang Asli from three villages had on 5 June 2000 obtained judgment against the Johor State Government which was ordered to pay compensation for the acquisition of their ancestral land. Khana & Co were the solicitors representing the said Orang Asli (beneficiaries) in the claim regarding the compensation. Pursuant to that judgment, a total sum of RM38.5 million was paid out to Khana & Co by the Johor State Government.

[5] In 2005, the respondent was appointed to represent the Orang Asli who alleged that although they did receive some monies from the Trust Fund, they could not obtain any details nor any correct financial information from the Trustees which included Kanawagi with regards to the compensation monies. The respondent then, on their instruction, for and on behalf of these Orang Asli filed a suit in the Johor Bahru High court (Saling suit) against inter alia Kanawagi and Khana & Co for breach of trust and constructive trust in request of the compensation monies. The relief sought, inter alia, are as follows:

a. the explanation for the sum of RM16,554,111.92 taken from Trust monies as alleged fees and expenses;

b. the status and explanation to the balance of RM22 million;

c. the status and accounts of the accrued interest on the RM22 million.

[6] The learned Vernon Ong JC (as he then was) had granted the Orang Asli interim relief as follows:

a. Suspension of Kanawagi as Trustee of the Trust Fund;

b. To restrain the defendants (Kanawagi, Khana & Co) from dissipating the trust assets and the Judgment sum;

c. To forthwith appoint a Receiver & Manager (hereinafter referred to as "R&M") to manage the trust and to investigate into the matters pertaining to the compensation monies;

[7] The appellants appeal against the interim relief was dismissed by the court of Appeal and their leave application at the Federal court was withdrawn at the 11th hour. A subsequent application to remove the Receiver and Manager was also dismissed by the High court as well as the court of Appeal.

[8] On 7 March 2011, the respondent lodged the complaint with the DB on behalf of Saling against the appellants and two others. The complaint pertains to the withdrawal and unlawful use of the RM7 million of the Trust Fund monies, which amount was allegedly used for the appellants benefit and enrichment and not for the benefit of the Orang Asli. Briefly, the complaint states:

a. Kanawagi unlawfully allowed the released of the sum of RM7 million;

b. Both appellants unlawfully entered into a self-dealing arrangement not for the be