Estate of veteran engineer wins RM2mil Puchong land battle

Court of Appeal rules that the late former Malaysian Highway Authority deputy director-general held beneficial ownership of the disputed property.

Justice Ong Chee Kwan said the High Court erred in dismissing a claim by the estate of Chai Yen Chong, who died in 2017 at the age of 86.

Ong, who sat with Justices Che Ruzima Ghazali and Firuz Jaffril, said the evidence overwhelmingly established that the deceased was the beneficial owner of the property.

“Where the totality of evidence points overwhelmingly to beneficial ownership in the claimant, this court is not only entitled but obliged to correct the trial court’s error,” he said in the judgment released earlier this week.

The judge said a declaration of trust existed but had been withheld from the court, justifying an adverse inference that supported the deceased’s claim.

He noted that rental income from the property was consistently paid to Yen Chong in his lifetime for many years. Yen Chong also expressly described the property as “my factory and land in Puchong” in his March 25, 2005, will.

Named as defendants were Chai King Chong, the deceased’s brother, Chai Fook Chong, another brother, and Chai Jen Chiew, the son of King Chong.

Ong also said Jen Chiew, a lawyer, assisted in preparing the deceased’s will and was aware of the property’s inclusion but raised no objection.

The court found the Puchong property was registered in the name of King Chong as trustee for Yen Chong.

The deceased’s estate, represented by administrator Chai Jook Kew, the deceased’s second son, maintained that the Puchong property was held in trust for Yen Chong despite being registered in the name of King Chong before being transferred to Jen Chiew.

Another plot of land in Australia

The case also involved a family dispute over the beneficial ownership of a 20-acre piece of property in Brisbane, Australia, known as the Nutting property, in which the estate claimed that Yen Chong held two-thirds beneficial interest with the remaining belonging to King Chong.

The property was sold in 2014 for A$7.35 million. After deducting expenses, the net sale proceeds amounted to A$6,982,737, of which the estate’s two-thirds share totalled A$4,429,506.67 (approximately RM12.18 million).

The High Court dismissed the estate’s claim over the Puchong land but found that the estate was entitled to the two-thirds beneficial interest in the Nutting property.

King Chong and Jen Chiew appealed that finding, but the Court of Appeal dismissed the appeal and upheld the determination that Yen Chong held a two-thirds beneficial interest in the property.

Ong said the sale proceeds were transferred on the understanding that Yen Chong would receive his share. “This evidence is credible and there is no basis to interfere with the trial judge’s assessment of the witness,” he said.

The Court of Appeal also awarded the estate RM100,000 in costs.

Yen Chong’s contributions

Yen Chong’s contributions to Malaysia’s infrastructure included the design and supervision of the country’s first flyover at Jalan Kinabalu, linking Jalan Maharajalela and Jalan Kuching via the National Mosque.

He also played a key role in developing extensive road networks in Johor Tenggara for Felda, and served as project director for the construction of the first Penang Bridge.

Lawyers D Krishna and Yong Yoong Hui represented the deceased’s estate, while Sharmini Natalie Durai and Pang Yi Qing appeared for King Chong and Jen Chiew.