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. ) (BY ORIGINAL ACTION) LEMBAGA PEMEGANG AMANAH KOLEJ ISLAM MALAYSIA 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. ) (BY ORIGINAL ACTION) LEMBAGA PEMEGANG AMANAH KOLEJ ISLAM MALAYSIA 1.

The Trust Deed prohibited the use of BOT funds for the activities undertaken by IASB absent strict compliance with its clauses; decisions by MT, EXCO or Committee could not lawfully disburse funds; the 1st Plaintiff, as alter ego of IASB, committed deceit and breached duties under the Trust Deed and fiduciary obligations; consequently the corporate veil was pierced and the counterclaim against the 1st Plaintiff and IASB succeeds with declarations and equitable remedies including account, tracing and compensation; claims against 2nd and 3rd Plaintiffs fail.

Citation
BA-22NCVC-714-12/2017 (Mahkamah Tinggi)
Parties
1st Plaintiff / Defendant in Counterclaim: PROF. DR. SITI NORMALA BINTI SHEIKH OBID; 2nd Plaintiff / Defendant in Counterclaim: NOORIZAN FADILAH BINTI MD. ZAIN; 3rd Plaintiff / Defendant in Counterclaim: NUR KHADIJAH BINTI MD. ZAIN; Defendant (original Action) / Plaintiff (counterclaim): LEMBAGA PEMEGANG AMANAH KOLEJ ISLAM MALAYSIA; Defendant (counterclaim): IVY ACADEMY SDN. BHD.
Court
High Court
Jurisdiction
Malaysia
Judgment Date
28 August 2020
Case Number
BA-22NCVC-714-12/2017 (Mahkamah Tinggi)
Procedural Posture
Civil Suit Involving Trust Funds, Trusteeship, Company and Tort Claims Including Counterclaim / Judgment After Trial (amended Judgment)
Outcome
Original Action dismissed; Counterclaim dismissed as to 2nd and 3rd Plaintiffs; Counterclaim allowed in part against 1st Plaintiff and Ivy Academy Sdn. Bhd.; no order as to costs
Legal Topics
Breach of Trust Deed, Fiduciary Duties of Trustees, Piercing the Corporate Veil, Deceit/fraud, Dishonest Assistance/knowing Receipt, Estoppel and Admissibility Under Evidence Act, Unjust Enrichment, Money Had and Received, Remedies: Declarations, Account, Tracing
Source Language
Malay/English
Trusts Equity Company Law Tort (deceit) Civil Procedure Employment Law Breach of Trust Deed Fiduciary Duties of Trustees +7 more

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Parties

PROF. DR. SITI NORMALA BINTI SHEIKH OBID

1st Plaintiff / Defendant in Counterclaim

NOORIZAN FADILAH BINTI MD. ZAIN

2nd Plaintiff / Defendant in Counterclaim

NUR KHADIJAH BINTI MD. ZAIN

3rd Plaintiff / Defendant in Counterclaim

LEMBAGA PEMEGANG AMANAH KOLEJ ISLAM MALAYSIA

Defendant (original Action) / Plaintiff (counterclaim)

IVY ACADEMY SDN. BHD.

Defendant (counterclaim)

Procedural Posture

Civil Suit Involving Trust Funds, Trusteeship, Company and Tort Claims Including Counterclaim / Judgment After Trial (amended Judgment)

Legal Issues

  1. 1 Whether BOT complied with Trust Deed clauses 2,3,3.10 and 17.1 when funds were used for Ivy Academy/Ivy Academy Sdn Bhd
  2. 2 Whether decisions of EXCO, Committee, MT or Chairman could validly bind BOT on disbursement of trust funds
  3. 3 Whether 1st Plaintiff was alter ego/controller of IASB and whether corporate veil should be pierced

Ratio Decidendi

The Trust Deed prohibited the use of BOT funds for the activities undertaken by IASB absent strict compliance with its clauses; decisions by MT, EXCO or Committee could not lawfully disburse funds; the 1st Plaintiff, as alter ego of IASB, committed deceit and breached duties under the Trust Deed and fiduciary obligations; consequently the corporate veil was pierced and the counterclaim against the 1st Plaintiff and IASB succeeds with declarations and equitable remedies including account, tracing and compensation; claims against 2nd and 3rd Plaintiffs fail.

Court Disposition

Original Action dismissed; Counterclaim dismissed as to 2nd and 3rd Plaintiffs; Counterclaim allowed in part against 1st Plaintiff and Ivy Academy Sdn. Bhd.; no order as to costs

Orders

  • Declaration that the 1st Plaintiff committed fraud and breaches regarding use of BOT funds
  • Declaration that the 1st Plaintiff fraudulently obtained BOT funds and that IASB knowingly received those funds