Judgment

Avinder Singh Gill JC:

[1] This is a civil action filed in the High Court of Malaya at Kuala Lumpur under Civil Suit No: WA-22NCvC-432-08/2023 between Surendran a/l Thuraisingam ("plaintiff"), in his capacity as executor of the estate of the late Kumar a/l Thuraisingam ("the Deceased"), and Selvamanickaraja a/l Manohar ("the defendant"), who is sued both in his personal capacity and as litigation representative for Manogaran a/l Selvamanickaraja and Athyiyaman a/l Selvamanickaraja, his children.

[2] Dispute

The conflict concerns the distribution of insurance policy proceeds and trust assets under a Deed of Trust dated 7 March 2014, naming Rockwills Trustee Berhad as trustee. The Plaintiff argues that under Sch 10 of the Financial Services Act ("FSA") 2013, payments to nominees who are not family members must form part of the deceased's estate and be applied to settle debts. He claims the defendant and other beneficiaries lack blood ties to the Deceased and must return assets for debt settlement in accordance with the Deceased's Will dated 17 August 2021.

[3] The Defendant denies liability, arguing that the Deed of Trust and the Will are separate legal instruments, that the Will did not revoke the Trust, and that the assets in question were validly designated to the named beneficiaries. The defendant also challenges the relevance of "blood relationship" under the law; disputes the plaintiff's interpretation of the FSA 2013; and stresses that certain policies were specifically allocated in the Trust for debt repayment, with the remaining proceeds to be distributed to designated beneficiaries.

[4] The Plaintiff, in reply, maintains that the Will post-dated and effectively revoked the Trust; that the defendant's position is inconsistent and misleading; and that the trust assets — particularly given the absence of a family relationship — must be returned to the estate to satisfy outstanding debts. The plaintiff seeks declaratory relief, return of the assets, interest, costs, and any further relief deemed appropriate by the Court

[5] The Plaintiff, Surendran a/l Thuraisingam (as executor of the estate of the late Kumar a/l Thuraisingam), seeks the following reliefs:

a. A declaration under para 6 of Sch 10 to the FSA 2013 that the defendant (Selvamanickaraja a/l Manohar, acting for himself and as litigation representative for two minors, Manogaran a/l Selvamanickaraja and Athyiyaman a/l Selvamanickaraja) is not entitled to receive the Trust assets (insurance policy proceeds).

b. A declaration that any payments / Trust assets given to the defendant form part of the deceased's estate and are subject to debts.

c. An order for the defendant to return any such payments / Trust assets to the plaintiff.

d. Interest at 5% per annum, Costs, and other relief deemed just.

[6] The above reliefs are premised on the following pleadings of the plaintiff as disclosed in the Statement of Claim.

a. The Plaintiff brings this action as the executor of the estate of Kumar a/l Thuraisingam ('the Deceased'), his brother, who passed away on 16 April 2022 due to an illness during the COVID-19 pandemic.

b. On 17 August 2021, the Deceased had executed a Will, witnessed by Lim Tau Ming and Tung Lai Foon, appointing the plaintiff as executor and directing him and a business partner to settle debts using estate assets, including Trust assets.

c. The Plaintiff obtained a Grant of Probate on 26 October 2022 vide Kuala Lumpur High Court Originating Summons No: WA-32NCVC-2270-08/2022.

d. Before the execution of the Will, the Deceased had, on 7 March 2014, also created and executed a Trust with Rockwills Trustee Berhad ('Rockwills'). The Trust assets included four life insurance policies. Twelve beneficiaries ("Waris-Waris Amanah") were named, including the defendant and his two children. Some beneficiaries (including the defendant and his children) had no "blood relationship" with the Deceased.

e. The defendant and his two children are described in the Trus