1. ) 1. PROF. DR. SITI NORMALA BINTI SHEIKH OBID 2. NOORIZAN FADILAH BINTI MD. ZAIN (NRIC No.: 790213-01-6006) 3. NUR KHADIJAH BINTI MD. ZAIN (NRIC No.: 850224-71-5052) 2. ) LEMBAGA PEMEGANG AMANAH KOLEJ ISLAM MALAYSIA 1. ) LEMBAGA PEMEGANG

1. ) 1. PROF. DR. SITI NORMALA BINTI SHEIKH OBID 2. NOORIZAN FADILAH BINTI MD. ZAIN (NRIC No.: 790213-01-6006) 3. NUR KHADIJAH BINTI MD. ZAIN (NRIC No.: 850224-71-5052) 2. ) LEMBAGA PEMEGANG AMANAH KOLEJ ISLAM MALAYSIA 1. ) LEMBAGA PEMEGANG

The court held that the transfer and use of BOT funds for IASB did not comply strictly with the Trust Deed (objects and clause 3 conditions) and were not lawfully authorized by the trustees; the 1st Plaintiff knowingly misrepresented and committed deceit, abused IASB's corporate personality so the veil was pierced, and she is personally liable to account and compensate BOT; the 2nd and 3rd Plaintiffs were not shown to be dishonest or fiduciaries and are not liable.

Citation
BA-22NCVC-714-12/2017 (Mahkamah Tinggi)
Parties
Plaintiff / Defendant (counterclaim): Prof. Dr. Siti Normala binti Sheikh Obid; Plaintiff / Defendant (counterclaim): Noorizan Fadilah binti Md. Zain; Plaintiff / Defendant (counterclaim): Nur Khadijah binti Md. Zain; Defendant / Plaintiff (counterclaim): Lembaga Pemegang Amanah Kolej Islam Malaysia (BOT); Defendant (counterclaim): Ivy Academy Sdn. Bhd. (IASB)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 August 2020
Case Number
BA-22NCVC-714-12/2017 (Mahkamah Tinggi)
Procedural Posture
Civil Suit / Judgment After Trial
Outcome
Original action dismissed; counterclaim dismissed against 2nd and 3rd Plaintiffs; counterclaim allowed against 1st Plaintiff and IASB; no order as to costs.
Legal Topics
Breach of Trust Deed, Piercing the Corporate Veil, Elements of Deceit (fraud), Fiduciary Duties of Trustees, Estoppel and Evidence, Unjust Enrichment, Money Had and Received
Source Language
Malay/English
Trusts Equity and Fiduciary Law Company Law Civil Fraud and Deceit Remedies and Restitution Breach of Trust Deed Piercing the Corporate Veil Elements of Deceit (fraud) +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 23 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Prof. Dr. Siti Normala binti Sheikh Obid

Plaintiff / Defendant (counterclaim)

Noorizan Fadilah binti Md. Zain

Plaintiff / Defendant (counterclaim)

Nur Khadijah binti Md. Zain

Plaintiff / Defendant (counterclaim)

Lembaga Pemegang Amanah Kolej Islam Malaysia (BOT)

Defendant / Plaintiff (counterclaim)

Ivy Academy Sdn. Bhd. (IASB)

Defendant (counterclaim)

Procedural Posture

Civil Suit / Judgment After Trial

Legal Issues

  1. 1 Whether BOT complied with clauses 2, 3, 3.10 and 17.1 of the Trust Deed in using funds for IASB
  2. 2 Whether decisions by MT, Chairman, EXCO or Committee can bind BOT on disbursement of funds
  3. 3 Whether the 1st Plaintiff was the alter ego/controller of IASB

Ratio Decidendi

The court held that the transfer and use of BOT funds for IASB did not comply strictly with the Trust Deed (objects and clause 3 conditions) and were not lawfully authorized by the trustees; the 1st Plaintiff knowingly misrepresented and committed deceit, abused IASB's corporate personality so the veil was pierced, and she is personally liable to account and compensate BOT; the 2nd and 3rd Plaintiffs were not shown to be dishonest or fiduciaries and are not liable.

Court Disposition

Original action dismissed; counterclaim dismissed against 2nd and 3rd Plaintiffs; counterclaim allowed against 1st Plaintiff and IASB; no order as to costs.

Orders

  • Declarations that the 1st Plaintiff committed fraud and breaches and that IASB knowingly received BOT funds as a result
  • Declaration that the 1st Plaintiff is the alter ego of IASB and holds BOT funds as constructive trustee for BOT