1. ) ONG SANG HUAT 2. ) ONG SIONG WOON v 1. ) TAI JIXIA 2. ) MANIFEST WEALTH MANAGEMENT SDN. BHD.
Outcome
KESIMPULAN [84] Bersandarkan kepada alasan-alasan yang dicerakinkan di atas dan setelah meneliti hujahan-hujahan bertulis oleh peguam cara terpelajar bagi plaintif-plaintif dan defendan kedua, Mahkamah ini memutuskan sebagaimana berikut – a) Tuntutan plaintif-plaintif terhadap defendan kedua ditolak; b) Tuntutan balas defendan kedua dibenarkan bagi perintah berikut- i. Kaveat persendirian No.
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Judges (1)
Counsel (6)
Case Significance
A trial over a shop-office transferred on trust under a divorce order and later sold to a corporate purchaser, with the plaintiffs' claim to recover possession failing and costs awarded to the purchaser.
This High Court decision follows a full trial of a claim by two plaintiffs to recover possession of a two-storey shop-office at Bukit Rimau, Shah Alam, held under a Selangor land title. The property had originally been matrimonial property acquired during the marriage — harta sepencarian (jointly acquired marital property) — of the first plaintiff and the first defendant. Pursuant to a divorce order made by the High Court at Shah Alam in December 2012, the first plaintiff had transferred the property to the first defendant to be held on trust for the benefit of the child of the marriage until the child came of age. The dispute arose after the first defendant sold the property to the second defendant, a corporate purchaser. The two plaintiffs, who are brothers, sought to recover the property, contending that the sale was inconsistent with the trust.
The case required the Court to weigh the terms and effect of the earlier transfer against the position of the second defendant as purchaser, and to determine whether the plaintiffs had established an entitlement to recover possession as against a party that had bought the property. The second defendant advanced a counterclaim.
Having tried the matter, the Court decided against the plaintiffs. It ordered the plaintiffs to pay costs of RM20,000 to the second defendant, the corporate purchaser, reflecting the failure of their claim to recover the property and the disposition of the second defendant's position. Dissatisfied with the outcome, the plaintiffs filed a notice of appeal. The judgment is a useful illustration of how the courts approach a claim to recover property that was transferred to hold on trust pursuant to a divorce order and later sold to a third party, and of the difficulty of unwinding such a sale as against a purchaser once the property has changed hands.
Summary
Two brothers sought to recover a shop-office held in trust for their child under a 2014 divorce decree nisi, after the ex-wife fraudulently sold it to the second defendant. The High Court dismissed the plaintiffs' claim, finding that the first plaintiff was a bankrupt without locus standi and the second defendant was a bona fide purchaser with indefeasible title under s.340 of the National Land Code. The second defendant's counterclaim was allowed, ordering cancellation of the private caveat and nominal damages.
What was the plaintiffs' claim about?
The plaintiffs sought to recover a Shah Alam shop-office that had been marital property (harta sepencarian), transferred under a 2012 divorce order to the first defendant to hold on trust for the child of the marriage, and later sold by the first defendant to the second defendant, a corporate purchaser.
What did the Court decide after trial?
The Court decided against the plaintiffs and ordered them to pay costs of RM20,000 to the second defendant, the corporate purchaser; the plaintiffs filed a notice of appeal.
Statutes Cited
Cases Cited (20)
Judgment
Read the full judgment on the official Malaysia Courts portal.
Read on eJudgmentSource: eJudgment (ba-22ncvc-468-11-2023)