Lalwani Shalini v Lalwani Ashok: Breach of Trust, Fiduciary Duty & Estate Administration

In Suit No 323 of 2015, the Singapore High Court heard a case between Plaintiffs Lalwani Shalini Gobind and Malti Gobind Lalwani, and Defendant Lalwani Ashok Bherumal, regarding the administration of an estate. The plaintiffs, beneficiaries of the estate, sought accounts and recovery of misappropriated sums from the defendant, the sole executor and trustee. The court, presided over by Aedit Abdullah JC, granted most of the reliefs sought, including orders for accounts to be taken and repayment of specific sums, finding the defendant liable for breach of trust.

1. Case Overview

1.1 Court

High Court of Singapore

1.2 Outcome

Most of the prayers sought in relation to the taking of accounts on a common basis were granted.

1.3 Case Type

Probate

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Beneficiaries sought accounts against the executor for misappropriation. The court granted most reliefs, including accounts and repayment of sums.

1.7 Decision Date

23 April 2017

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
Lalwani Ashok Bherumal	Defendant	Individual	Account to be taken	Lost	Lim Thian Siong Sean of Hin Tat Augustine & Partners Han Shanru Gloria Bernadette of Hin Tat Augustine & Partners
Lalwani Shalini Gobind	Plaintiff	Individual	Account to be taken	Partial	Nandwani Manoj Prakash of Gabriel Law Corporation Ong Xuan Ning, Christine (Weng Xuanning) of Gabriel Law Corporation
Malti Gobind Lalwani	Plaintiff	Individual	Account to be taken	Partial	Nandwani Manoj Prakash of Gabriel Law Corporation Ong Xuan Ning, Christine (Weng Xuanning) of Gabriel Law Corporation

3. Judges

Judge Name	Title	Delivered Judgment
Aedit Abdullah	Judicial Commissioner	Yes

4. Counsels

Counsel Name	Organization
Lim Thian Siong Sean	Hin Tat Augustine & Partners
Han Shanru Gloria Bernadette	Hin Tat Augustine & Partners
Nandwani Manoj Prakash	Gabriel Law Corporation
Ong Xuan Ning, Christine (Weng Xuanning)	Gabriel Law Corporation

4. Facts

The testator passed away on 9 July 1999, leaving a will.
The will provided for his son to inherit 50% of his estate and the remaining 50% to be divided equally between his two daughters.
The testator's son passed away intestate on 20 March 2002, leaving the plaintiffs as beneficiaries to his share of the estate.
The defendant, the testator's brother, became the sole surviving executor of the estate.
The plaintiffs claimed the defendant failed to properly account for certain assets of the estate.
The plaintiffs alleged the defendant misappropriated specific sums from the estate account and a joint UOB account.
The defendant conceded to withdrawing $118,000 from the Estate Account but claimed it was a loan.

5. Formal Citations

Lalwani Shalini Gobind and another v Lalwani Ashok Bherumal, Suit No 323 of 2015, [2017] SGHC 90

6. Timeline

Date	Event
1999-07-02	Will dated
1999-07-09	Testator passed away
2001-02-13	Grant of probate issued
2002-03-20	Testator’s son passed away intestate
2008-12-31	Finalised Schedule of Assets filed
2015-01-01	Suit filed
2016-09-20	Trial began
2017-04-24	Judgment issued

7. Legal Issues

Breach of Fiduciary Duty
- Outcome: The court found the defendant liable for misappropriation of funds from the Estate Account and the Joint UOB Account, constituting a breach of trust.
- Category: Substantive
- Sub-Issues:
  - Misappropriation of trust funds
  - Failure to properly account for assets
Duty to Account
- Outcome: The court granted the plaintiffs' claim for the taking of accounts in relation to the Estate Account, shareholdings in Basco and Eltee, interest in Bob's, Property Proceeds, and the Estate's interest in Lilan's estate.
- Category: Substantive
- Sub-Issues:
  - Failure to provide proper accounts
  - Incomplete disclosure of assets
Executor's Duties
- Outcome: The court clarified the duties of an executor and trustee, emphasizing the fiduciary duty owed to the beneficiaries of an estate.
- Category: Substantive
- Sub-Issues:
  - Administration of estate assets
  - Distribution of assets to beneficiaries

8. Remedies Sought

Taking of Accounts
Recovery of Misappropriated Sums
Equitable Compensation

9. Cause of Actions

Breach of Trust
Breach of Fiduciary Duty
Failure to Account

10. Practice Areas

Trust Administration
Estate Litigation
Fiduciary Duty

11. Industries

No industries specified

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
Lee Yoke San and another v Tsong Sai Cecilia and another	High Court	Yes	[1992] 3 SLR(R) 516	Singapore	Cited for the duties of an executor and trustee, including the fiduciary duty owed to beneficiaries.
Foo Jee Boo and another v Foo Jhee Tuang and others	High Court	Yes	[2016] SGHC 260	Singapore	Cited for the specific duties of an executor or trustee, including determining assets and liabilities, and acting impartially.
Chng Weng Wah v Goh Bak Heng	Court of Appeal	Yes	[2016] 2 SLR 464	Singapore	Cited for the three stages of a claim for an account on a common basis.
Foo Jee Seng v Foo Jhee Tuang	Court of Appeal	Yes	[2012] 4 SLR 339	Singapore	Cited for the principle that beneficiaries are entitled to be furnished with an account of the funds in the trust.
Chiang Shirley v Chiang Dong Pheng	High Court	Yes	[2015] 3 SLR 770	Singapore	Cited for the principle that the duty to furnish account is continuous and on demand.
Glazier Holdings Pty Ltd v Australian Men’s Health Pty Ltd (No 2)	Supreme Court of New South Wales	Yes	[2001] NSWSC 6	Australia	Cited for the level of disclosure necessary to discharge the duty to furnish account on a common basis.
Ong Jane Rebecca v Lim Lie Hoa and Others	Court of Appeal	Yes	[2005] SGCA 4	Singapore	Cited to distinguish between taking of accounts on a common basis and on a wilful default basis.
Libertarian Investments Ltd v Hall	Hong Kong Court of Final Appeal	Yes	[2013] 16 HKCFAR 681	Hong Kong	Cited to distinguish between the taking of accounts and an account of profits.
Ng Bok Eng Holdings Pte Ltd and another v Wong Ser Wan	Court of Appeal	Yes	[2005] 4 SLR(R) 561	Singapore	Cited to distinguish between the taking of accounts and an account of profits.
Ang Tin Gee v Pang Teck Guan	High Court	Yes	[2011] SGHC 259	Singapore	Cited to distinguish between the taking of accounts and an account of profits.
E C Investment Holding Pte Ltd v Ridout Residence Pte Ltd	Court of Appeal	Yes	[2013] 4 SLR 123	Singapore	Cited for the trustee's right to be reimbursed and indemnified for expenses.
Quality Assurance Management Asia Pte Ltd v Zhang Qing	High Court	Yes	[2013] 3 SLR 631	Singapore	Cited to distinguish between damages and equitable compensation.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
Limitation Act (Cap 163, 1996 Rev Ed)	Singapore
Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed)	Singapore

15. Key Terms and Keywords

15.1 Key Terms

Executor
Trustee
Beneficiary
Fiduciary Duty
Estate Account
Joint UOB Account
Schedule of Assets
Taking of Accounts
Misappropriation
Breach of Trust

15.2 Keywords

trust
estate
fiduciary duty
executor
beneficiary
account
misappropriation

17. Areas of Law

Area Name	Relevance Score
Estate Administration	95
Duty to Account	90
Trust Law	90
Breach of Trust	85
Fiduciary Law	75
Damages	60
Equitable Compensation	60
Remedies	50
Corporate Law	20

16. Subjects

Trusts
Estates
Fiduciary Duties
Probate