1. TAN HWA LING @ TAN SIEW LENG (NO. K/P: 460406-01-5032) 2. TAN SIEW HOON (NO. K/P: 500421-01-5026) 3. TAN SIEW CHING (PASPORT SINGAPURA NO. E5817207A) 1. TAN KENG YONG @ TAN KENG HONG (NO. K/P: 440625-01-5413) 2. TAN KENG MENG (NO. K/P: 4

1. TAN HWA LING @ TAN SIEW LENG (NO. K/P: 460406-01-5032) 2. TAN SIEW HOON (NO. K/P: 500421-01-5026) 3. TAN SIEW CHING (PASPORT SINGAPURA NO. E5817207A) 1. TAN KENG YONG @ TAN KENG HONG (NO. K/P: 440625-01-5413) 2. TAN KENG MENG (NO. K/P: 4

The Court of Appeal allowed the appeal because the plaintiffs failed to discharge the legal burden to establish any express, resulting or constructive trust: the pleadings lacked required particulars for constructive trust or fraud, contemporaneous transfer documents evidenced valid transfers, the evidential burden never shifted to the defendants, the adverse inference was improperly drawn, company claims belonged to the company (not the plaintiffs personally) and, in any event, the plaintiffs' long delay amounted to laches preventing equitable relief; accordingly the High Court judgment was set aside.

Citation
J-02(NCVC)(W)-199-02/2020 (Mahkamah Rayuan)
Parties
Appellant / First Defendant: Tan Keng Yong @ Tan Keng Hong; Appellant / Second Defendant: Tan Keng Meng; Respondent / First Plaintiff: Tan Hwa Ling @ Tan Siew Leng; Respondent / Second Plaintiff: Tan Siew Hoon; Respondent / Third Plaintiff: Tan Siew Ching
Court
NCVC
Jurisdiction
Malaysia
Judgment Date
24 January 2022
Case Number
J-02(NCVC)(W)-199-02/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (original Trial Judgment Set Aside)
Outcome
Appeal allowed; High Court judgment set aside.
Legal Topics
Resulting Trust, Constructive Trust, Pleadings and Particulars, Burden of Proof, Adverse Inference, Separate Legal Personality and Derivative Actions, Remedies: Declaration and Mandatory Injunction, Limitation Act S22 Exception
Source Language
Malay/English
Trusts and Equity Company Law Limitation and Laches Civil Procedure Evidence Law Resulting Trust Constructive Trust Pleadings and Particulars +5 more

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Parties

Tan Keng Yong @ Tan Keng Hong

Appellant / First Defendant

Tan Keng Meng

Appellant / Second Defendant

Tan Hwa Ling @ Tan Siew Leng

Respondent / First Plaintiff

Tan Siew Hoon

Respondent / Second Plaintiff

Tan Siew Ching

Respondent / Third Plaintiff

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (original Trial Judgment Set Aside)

Legal Issues

  1. 1 Whether a resulting trust over the disputed properties was established
  2. 2 Whether a constructive trust arose by reason of unconscionable conduct
  3. 3 Whether the plaintiffs' pleadings and particulars sufficiently pleaded a constructive trust, fraud or breach to raise exceptions to limitation

Ratio Decidendi

The Court of Appeal allowed the appeal because the plaintiffs failed to discharge the legal burden to establish any express, resulting or constructive trust: the pleadings lacked required particulars for constructive trust or fraud, contemporaneous transfer documents evidenced valid transfers, the evidential burden never shifted to the defendants, the adverse inference was improperly drawn, company claims belonged to the company (not the plaintiffs personally) and, in any event, the plaintiffs' long delay amounted to laches preventing equitable relief; accordingly the High Court judgment was set aside.

Court Disposition

Appeal allowed; High Court judgment set aside.

Orders

  • High Court judgment dated 14.1.2020 set aside
  • Costs awarded to appellants (defendants) in the sum of RM40,000.00 to be paid by the plaintiffs, subject to allocator