HSL GROUND ENGINEERING SDN BHD CIVIL TECH RESOURCES SDN BHD PIHAK YANG DIGARNIS 1. ) CIMB ISLAMIC BANK BERHAD 2. ) UNiTED OVERSEAS BANK (MALAYSIA) BHD 3. ) TRITERRA METROPOLIS SDN BHD

HSL GROUND ENGINEERING SDN BHD CIVIL TECH RESOURCES SDN BHD PIHAK YANG DIGARNIS 1. ) CIMB ISLAMIC BANK BERHAD 2. ) UNiTED OVERSEAS BANK (MALAYSIA) BHD 3. ) TRITERRA METROPOLIS SDN BHD

On the balance of probabilities the Court held that the arrangement (CLOA and notice of assignment) established either an express trust or, alternatively, a constructive trust such that the monies due under the main contract were held by Triterra on trust for Qingjian; accordingly the monies garnished belonged to Qingjian. Although Triterra's subsequent payment to the Judgment Creditor discharged Triterra's liability, the sums paid must be refunded and/or paid to Qingjian. The appeal was therefore allowed and sums paid to the JC were ordered to be returned to Qingjian.

Citation
WA-37G-57-07/2020 (Mahkamah Tinggi)
Parties
Judgment Creditor: HSL Ground Engineering Sdn Bhd; Judgment Debtor: Civil Tech Resources Sdn Bhd; Garnishee: CIMB Islamic Bank Berhad; Garnishee: United Overseas Sdn Bhd; 3rd Garnishee / Employer: Triterra Metropolis Sdn Bhd; Third Party / Appellant: Qingjian Holding Group (M) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
19 August 2024
Case Number
WA-37G-57-07/2020 (Mahkamah Tinggi)
Procedural Posture
Garnishee Proceedings / Civil Appeal / Appellate Grounds of Judgment Allowing Appeal
Outcome
Appeal allowed
Legal Topics
Garnishee Order, Assignment, Express Trust, Constructive Trust, Res Judicata, Stay Application, Payment Discharge
Source Language
Malay/English
Civil Procedure Equity and Trusts Contract Execution and Garnishment Garnishee Order Assignment Express Trust Constructive Trust +3 more

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Parties

HSL Ground Engineering Sdn Bhd

Judgment Creditor

Civil Tech Resources Sdn Bhd

Judgment Debtor

CIMB Islamic Bank Berhad

Garnishee

United Overseas Sdn Bhd

Garnishee

Triterra Metropolis Sdn Bhd

3rd Garnishee / Employer

Qingjian Holding Group (M) Sdn Bhd

Third Party / Appellant

Procedural Posture

Garnishee Proceedings / Civil Appeal / Appellate Grounds of Judgment Allowing Appeal

Legal Issues

  1. 1 Whether the monies garnished were held on trust for Qingjian and thus not available to be garnished by the Judgment Creditor
  2. 2 Whether an express trust arose from the Conditional Letter of Award and related notices or, alternatively, a constructive trust should be imposed
  3. 3 Whether Qingjian is bound by the OS 871 Order and barred from raising the trust by res judicata or abuse of process

Ratio Decidendi

On the balance of probabilities the Court held that the arrangement (CLOA and notice of assignment) established either an express trust or, alternatively, a constructive trust such that the monies due under the main contract were held by Triterra on trust for Qingjian; accordingly the monies garnished belonged to Qingjian. Although Triterra's subsequent payment to the Judgment Creditor discharged Triterra's liability, the sums paid must be refunded and/or paid to Qingjian. The appeal was therefore allowed and sums paid to the JC were ordered to be returned to Qingjian.

Court Disposition

Appeal allowed

Orders

  • Allow Appeal as per enclosure 123 in OS 57
  • Direct that the sums paid to the Judgment Creditor (HSL Ground Engineering Sdn Bhd) be refunded and/or paid to Qingjian Holding Group (M) Sdn Bhd