HUI FOONG KIEW v YEE TUCK LEE BUKAN PIHAK-PIHAK Jabatan Insolvensi Malaysia
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ABSTRACT A mother claimed her bankrupt son held his property share on trust for her, seeking all sale proceeds (RM1,100,000). The property was jointly owned for 40 years. After the son's bankruptcy (2013-2024) and property sale (2023), the Director General of Insolvency claimed his share (RM400,298.33) for creditors owed RM537,656.34. The High Court dismissed the claim. The mother failed to prove the trust—only late statutory declarations existed after the DGI's claim, with no trust deed or secondary evidence. The timing showed bad faith. The son's interest vested in the DGI upon bankruptcy under s 8(1)(b) Insolvency Act 1967. Discharge doesn't divest vested property. The court found both parties acted with improper motives to defeat creditor claims. Accepting such claims would undermine land registration and bankruptcy systems. KEYWORDS Trust; Presumption of advancement; Declaratory relief; Vesting of property; Director General of Insolvency; Insolvency Act 1967; National Land Code 1965; Specific Relief Act 1950
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