The properties of a deregistered society vest in the Director General of Insolvency, prevailing over any conflicting provisions of the Hindu Endowments Ordinance.

JUDGMENT

Kamaludin Md Said JCA:

Introduction

[1] There were two appeals fixed before this court as follows:

i. Civil Appeal No: P-01 (NCVC) (A)-603-10-2018 (Appeal 603);

ii. Civil Appeal No: P-02 (NCVC) (A)-2098-10-2018 (Appeal 2098)

[2] Both Appeals were heard together. The appeals concerned the decision of the High court Judge (learned judge) made in Originating Summon No: PA- 24NCvC-784-09-2017 in the High court at Penang dated 14 September 2018.

[3] In Appeal 603, the appellant, Director General of Insolvency is the 3rd defendant. In Appeal 2098, the appellant, Uluganathan KAP Ramasamy who is the trustee of Kuil Sree Selvavinayagar Hindu Paripalana Devasthanam [1985] Perai, is the 6th defendant. The respondent in both appeals is the Setiausaha Lembaga Wakaf Hindu Negeri Pulau Pinang who is the plaintiff.

[4] The learned judge allowed the plaintiff's application by way of Re-Amended Originating Summons for a summarised prayers as follows:

(a) Kuil Sree Selvavinayagar Hindu Paripalana Devasthanam [1985] Perai ('the Society') to be deregistered as the owner of the 7 parcels of land, namely Lot No 305 Geran No 61, Lot No 336 Geran No 62, Lot No 307 Geran No 63, Lot No 308 Geran No 64, Lot No 309 Geran No 65, Lot 5812 GM 355 and Lot 223 GM 673 which are all situated in Seberang Perai Tengah, Penang ('the said lands').

(b) The said lands to be vested in the plaintiff as the absolute owner of the said lands.

(c) The Society to be replaced with the plaintiff as the owner of three bank accounts ('the accounts') previously operated under the name of the Society.

(d) An order that the Society does not possess any right or interest on the said lands and the accounts.

Background Facts

[5] The background facts are as follows:

(i) The Society is an association registered under the Societies Act 1966 which was responsible for the administration of a Hindu temple known as Kuil Sri Selvavinayagar Hindu Paripalana Devasthanam Perai ('the temple'). The Society was the rightful owner of the said lands and the accounts until the order of the learned judge dated 14 September 2018.

(ii) The plaintiff is established under the Hindu Endowments Ordinance 1906 (Straits Settlement Cap 175) for the purpose to administer Hindu religious and charitable endowments.

(iii) The Director General of Insolvency is conferred with wide powers and duties to administer the properties of a bankrupt, wound-up company, deregistered society and deregistered trade union as provided in the law relating to bankruptcy and the establishment of the aforesaid entities.

(iv) On 2 September 2015, the Society had been cancelled under s 13(1)(c)(iv) of the Societies Act by the Registrar of Societies ('the Registrar') for failing to adhere the Registrar's instruction in a letter dated 20 March 2015 to reconduct a general meeting in accordance with the constitution of the Society.

(v) The Society had appealed against the decision of the Registrar but it was dismissed by the Ministry of Home Affairs on 27 June 2016. As such, the order of cancellation by the Registrar remains in force.

(vi) Prior to the cancellation, in a letter dated 18 May 2015 addressed to YB Professor Dr P Ramasamy as the Chairman of the plaintiff, the Registrar informed that Registrar of Society ('ROS') had no objection on the wishes of the plaintiff to take over the management of the Society.

(vii) On 9 September 2015, Majlis Mesyuarat Kerajaan Negeri Pulau Pinang ('MMK') had consented to the taking over of the management of the Society by the plaintiff. Consequently, on 16 October 2015, TYT Yang Dipertua Negeri Pulau Pinang had given his assent to the decision made by MMK.

(viii) By a letter dated 10 December 2015 extended to the former Chairman of the Society, Mr Ayapan, the plaintiff demanded him to surrender the titles of the said properties and financial records of the Society but to no avail.

(ix) Thereafter, upon the cancellation of the Society, the Direct General of Insolvency vide a letter dated 1 August 2017 to the offi