Lum Kai Heng v Quek Peng Chai and Others

• Jurisdiction: Singapore
• Judge: Kan Ting Chiu J
• Judgment Date: 27 March 2001
• Neutral Citation: [2001] SGHC 61
• Court: High Court (Singapore)
• Published date: 14 March 2013
• Year: 2001
• Plaintiff Counsel: K S Chung (Chung & Co)
• Defendant Counsel: Tan Cheng Han (Tan Cheng Yew & Partners),Alan Wong Hoi Ping (William Lai & Alan Wong),Kelvin Tan (Drew & Napier)
• Citation: [2001] SGHC 61

JUDGMENT:

Grounds of Decision

1. This is a dispute over the ownership of funds in joint banking accounts after one account holder died. These accounts were in the names of the Plaintiff, a lady of 67, and her late husband Quek Cheok Boon (hereinafter referred to as "the deceased") who died on 18 February 1998. The grant of probate for the deceased's estate was made in favour of the First and Second Defendants, a son and a daughter of the Plaintiff and the deceased on 17 September 1999.

2. The deceased held four joint accounts with the Plaintiff -

(i) Account No. 028-19153-7 at the Post Office Savings Bank (now part of DBS Bank);

(ii) Account No. 116-127-140-9 at United Overseas Bank Ltd (UOB);

(iii) Time Deposit Account No. 16479002 with Keppel Tat Lee Bank Ltd (hereinafter referred to as "the Third Defendant"); and

(iv) Account No. 24-30089-4 with the Third Defendant.

3. Before the grant of probate to the First and Second Defendants, the Plaintiff had operated the POSB and UOB accounts. On 17 February 1998 she withdrew $1,183,266.80 from POSB account No. 028-19153-7 and deposited it into account No. 125-05785-3 held in the names of the Plaintiff and Quek Li Kheng, another daughter of the Plaintiff and the deceased at the same bank. On 18 February 1998 she withdrew $218,055.87 from UOB account No. 116-127-140-9 and deposited it into account No. 126/110/722/3 at the same bank. (On 24 February 1998 she withdrew the same sum from the latter account and deposited it into POSB account No. 125-05785-3.)

4. After the Second Defendant received the grant she obtained the passbooks for POSB account No. 028-19153-7 and UOB account No. 116-127-140-9 from the Plaintiff. She took the position that the monies in these joint accounts belonged to the deceased's estate and demanded that the Plaintiff return the $1,183,266.80 and $218,055.87 withdrawn from those two accounts.

5. The Plaintiff withdrew $1,401,322.67 from POSB account No. 125-05785-3 in a cashier's order made payable to the First and Second Defendants and handed it to the Second Defendant, but she subsequently obtained legal advice, and now claims the monies as her property.

6. The Third Defendant became involved through a series of transactions commencing on 6 August 1998. The Plaintiff claimed that on that day a Teng Cheong Guan (hereinafter referred to as Teng), an employee of the Third Defendant suggested to her that the sums standing to her credit in accounts No. 16479002 and No. 24-30089-4 with the Third Defendant could be transferred into other accounts with the Third Defendant to earn higher rates of interest. When she accepted the suggestion, Teng produced nine sheets of paper bearing the Third Defendant's letter-head and she attached her signature to them. The Plaintiff now claims Teng made fraudulent representations to get her to sign them, and she signed non est factum.

7. The Plaintiff also alleges that Teng used one of the signed sheets without her knowledge and consent to close account No. 16479002 which had a credit balance of $1,024,063.54 and transferred $524,063.54 to a new account No. 24-30156-4 in the sole name of the Plaintiff and placed the balance of $500,000 into another time deposit account, and that Teng used another signed sheet to close account No. 24-30089-4 and transfer the balance of $72,144.12 therein to account No. 24-30156-4.

8. On 4 September 1998, the Third Defendant transferred $588,000 from account No. 24-30156-4 and paid it into account No. 24-72217-9 in the joint names of the First and Second Defendants. The Plaintiff alleged that this was done without her approval and that another of the signed sheets was used to enable this to be done.

9. On 7 September 1998 the Third Defendant transferred $500,000 from account No. 86219001 to account No. 24-72217-9. The Plaintiff alleged that this transfer was done without her consent, and that another signed sheet was used for the purpose.

The action

10. The Plaintiff's action against the First, Second and Third Defendants was filed on 29 February 2000. The Plaintiff seeks declarations that the $1,401,322.67, $500,000 and $588,000 belong absolutely and beneficially to her and do not form part of the deceased's estate, and she wants those sums to be repaid to her. The First and Second Defendants deny her claim and assert that the money is a part of the deceased's estate.

The proposed amendments

11. On 29 May 2000 an application was filed by the Plaintiff to add the Fourth Defendant as a party and to amend the Statement of Claim. The Fourth Defendant Saranya Sae-Ngow is the wife of Quek Peng Hock, another son of the Plaintiff and the deceased. She became involved because she was a holder with the First and Second Defendants of accounts No. 8-6084013 and No. 24-722179 at the Third Defendant into which $1,401,322.67 was paid. (She has ceased to be a holder of these accounts.)

12. The proposed amendments are intended to add new claims against the Defendants based on fraud, malice and conspiracy. Allegations of fraud, malice and conspiracy are repeated throughout the proposed amendments. The main assertions are in

(i) a new paragraph 13 -

13. On or about the 24^th February 1998 the 1^st, 2^nd and 4^th Defendants wrongfully and maliciously conspired and combined amongst themselves to defraud and to injure the Plaintiff by obtaining from her the cashier's order for the said sum and fraudulently deposited the said cashier's order into 2 accounts with the 3^rd Defendant in the joint names of the 1^st, 2^nd and 4^th Defendants as hereinafter pleaded without the Plaintiff's knowledge consent or approval.

(ii) the proposed re-numbered paragraph 14 (with the proposed amendments in italics) -

14.

The 1^st, 2^nd and 4^th Defendants have wrongfully claimed and continue to claim, that the said sum was beneficially solely owned by the Deceased and forms part of the Deceased's estate, and treated the said sum as their joint asset which they deposited it in 2 accounts in their joint names with the 3^rd Defendant on the 24^th February 1998 without the knowledge consent or approval of the Plaintiff. Particulars of the 2 accounts are as follows:-

(1) 24.2.98 Deposit of $1,400,000 into Account No. 86084013 (hereinafter referred to as "Account D" - the deception account) with the 3^rd Defendant fraudulently in the joint names of 1^st, 2^nd and 4^th Defendants

(2) 24.2.98 Deposit of $1,322.67 into Account No. 24-72217-9 (hereinafter referred to as "Account F" - the fraud account) with the 3^rd Defendant also fraudulently in the joint names of 1^st, 2^nd and 4^th Defendants

The Plaintiff will at the trial of this action refer to the statements of the above Accounts kept by the 3^rd Defendant with the knowledge of the 1^st, 2^nd and 4^th Defendants or alternatively in conspiracy with the 1^st, 2^nd and 4^th Defendants.

(iii) the proposed re-numbered paragraph 19 -

19.

On 4^th September 1998 the 3^rd Defendant without the knowledge, approval or consent of the Plaintiff, fraudulently and maliciously conspired with the 1^st, 2^nd and 4^th Defendants and caused the sum of $588,000 to be withdrawn from Account No. 24-30156-4 and paid into Account F in the joint names of the 1^st and 2^nd and 4^th Defendants The Plaintiff never authorised or ratified such withdrawal or transfer, which was made without her knowledge, approval or consent. The 3^rd Defendant purports to rely upon a cash withdrawal authorization form, printed in English, and signed by the Plaintiff. The said cash withdrawal authorization form in one of the said nine sheets was signed by the Plaintiff in blank on 6^th August 1998 in reliance on the oral representation of the 3^rd Defendant's employee Teng Cheong Guan that her signature would be used to effectuate the transfer of funds in Time Deposit Account No. 16479002 and Account No. 24-30089-4 onto other accounts for the benefit of the Plaintiff with the 3^rd Defendant.

(iv) the proposed re-numbered paragraph 20 -

20.

On 7^th September 1998, the 3^rd Defendant, without the knowledge, approval or consent of the Plaintiff, fraudulently and maliciously conspired with the 1^st, 2^nd and 4^th Defendants and caused the sum of $500,000 to be withdrawn from Account No. 86219001 and paid into Account F in the joint names of the 1s^t, 2^nd and 4^th Defendants. The Plaintiff never authorised or ratified such withdrawal or transfer, which was made without her knowledge, approval or consent. The Third Defendant purports to rely upon a general request form, printed in English on one of the said nine sheets and signed by the Plaintiff. The said general request form was signed by the Plaintiff in blank on 6th August 1998 in reliance on the oral representation of the 3^rd Defendant's employee Teng Cheong Guan that her signature would be used to effectuate the transfer of funds in Time Deposit Account No. 16479002 and Account No. 24-30089-4 onto other accounts for the benefit of the Plaintiff with the 3^rd Defendant.

(v) the proposed re-numbered paragraph 21 -

21.

The 1^st, 2^nd and 4^th Defendants have wrongfully and fraudulently claimed and continue to claim, that the said sums of $500,000 and $588,000 were beneficially solely owned by the Deceased and form part of the Deceased's estate, and have claimed the total sum of $1,088,000 which the 1^st, 2^nd and 4^th Defendants

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