[1] This is an appeal by the 1st and 2nd Appellants/1st Defendant and 2nd Defendants against the decision of the High Court in which the learned Judge dismissed the Appellants' counterclaim.

[2] On 17 November 2016, we heard the appeal and after giving due consideration to the evidence adduced in the trial Court and submissions by respective counsel, we allowed the appeal. We now give our grounds for that decision.

Background Facts

[3] In the main suit, the Plaintiff/Respondent had sought a declaration that the 1st and 2nd Appellants held 250,000 shares in the 3rd Appellant on trust for the Respondent on the ground that he had paid for the subscription of the 250,000 shares.

[4] The 1st and 2nd Appellants disputed the aforesaid claim on the ground that it was them who had paid the sum of RM250,000.00 for the 250,000 shares and filed a counterclaim for the return of t