HSL GROUND ENGINEERING SDN BHD 1. ) CIMB ISLAMIC BANK BERHAD 2. ) UNITED OVERSEAS BANK (MALAYSIA) BHD 3. ) TRITERRA METROPOLIS SDN BHD 4. ) ANEKA JARINGAN HOLDINGS BERHAD 5. ) CHINA CONSTRUCTION BANK (MALAYSIA) BERHAD PENCELAH QINGJIAN HOLD

HSL GROUND ENGINEERING SDN BHD 1. ) CIMB ISLAMIC BANK BERHAD 2. ) UNITED OVERSEAS BANK (MALAYSIA) BHD 3. ) TRITERRA METROPOLIS SDN BHD 4. ) ANEKA JARINGAN HOLDINGS BERHAD 5. ) CHINA CONSTRUCTION BANK (MALAYSIA) BERHAD PENCELAH QINGJIAN HOLD

On the balance of probabilities the Court found sufficient evidence (CLOA, Notice of Assignment, payment arrangement and completion certificate) to establish that Qingjian was the beneficial owner of the monies (express trust or in the alternative a constructive trust), and therefore the garnished sums belonged to Qingjian; although payments by Triterra to the Judgment Creditor discharged Triterra, the sums paid must be refunded and/or paid to Qingjian.

Citation
WA-37G-206-09/2021 (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: Triterra Metropolis Sdn Bhd; Third Party / Subcontractor Claiming Beneficial Interest: Qingjian Holding Group (M) Sdn Bhd
Court
High Court
Jurisdiction
Malaysia
Judgment Date
19 August 2024
Case Number
WA-37G-206-09/2021 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal Arising From Garnishee Proceedings / High Court Judgment on Appeal From Senior Assistant Registrar
Outcome
Appeal allowed; Court declared Qingjian beneficiary of the monies and directed repayment to Qingjian
Legal Topics
Garnishee Proceedings, Assignment of Debt, Express Trust, Constructive Trust, Res Judicata, Consent Judgments, Stay Application
Source Language
Malay/English
Civil Procedure Trusts Contract Law Enforcement of Judgments Garnishee Proceedings Assignment of Debt Express Trust Constructive Trust +3 more

Case Brief

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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

Qingjian Holding Group (M) Sdn Bhd

Third Party / Subcontractor Claiming Beneficial Interest

Procedural Posture

Civil Appeal Arising From Garnishee Proceedings / High Court Judgment on Appeal From Senior Assistant Registrar

Legal Issues

  1. 1 Whether monies payable by Triterra to CTR were held on trust for Qingjian and thus not subject to garnishment
  2. 2 Whether Qingjian is barred from raising the trust argument by prior OS 871 order or by res judicata/abuse of process
  3. 3 Whether payments already made by Triterra to the Judgment Creditor discharged Triterra's liability and the effect of such payments

Ratio Decidendi

On the balance of probabilities the Court found sufficient evidence (CLOA, Notice of Assignment, payment arrangement and completion certificate) to establish that Qingjian was the beneficial owner of the monies (express trust or in the alternative a constructive trust), and therefore the garnished sums belonged to Qingjian; although payments by Triterra to the Judgment Creditor discharged Triterra, the sums paid must be refunded and/or paid to Qingjian.

Court Disposition

Appeal allowed; Court declared Qingjian beneficiary of the monies and directed repayment to Qingjian

Orders

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