Jeyaretnam v Malayaperumal: Constructive Trusts & Equitable Lien on HDB Flat
Philip Antony Jeyaretnam and Ruhunadevi Daphne Inparani A Joshua, as executors of Dr. Paul Freda Malliamalar's estate, sued Kulandaivelu Malayaperumal and others to recover funds. The High Court found that Perumal held $2 million on constructive trust for the estate due to a breach of fiduciary duty. The court imposed an equitable lien of $329,812.55 on Perumal's Housing and Development Board (HDB) flat, representing funds from Dr. Paul used for its purchase, but declined to order the sale of the flat.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Equitable lien imposed on the Housing and Development Board flat for $329,812.55.
1.3 Case Type
Civil
1.4 Judgment Type
Oral Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiffs sought to recover funds from the defendant. The court found a constructive trust but imposed an equitable lien on the HDB flat.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Philip Antony Jeyaretnam | Plaintiff | Individual | Equitable lien imposed | Partial | Herman Jeremiah, Mark Lewis Shan, Lee Chia Ming |
| Ruhunadevi Daphne Inparani A Joshua | Plaintiff | Individual | Equitable lien imposed | Partial | Herman Jeremiah, Mark Lewis Shan, Lee Chia Ming |
| Kulandaivelu Malayaperumal | Defendant | Individual | Equitable lien imposed | Lost | |
| Gopal Subramanian | Defendant | Individual | Absent and unrepresented | Neutral | |
| Arulampalam Kanthimathy | Defendant | Individual | Absent and unrepresented | Neutral | |
| Parvathi d/o Somu | Defendant | Individual | Absent and unrepresented | Neutral | |
| Thirumurthy Ayernaar Pamabayan | Defendant, Third Party | Individual | Absent and unrepresented | Neutral | |
| Pramela d/o Govindasamy | Other | Individual | No order of sale | Neutral | |
| Housing and Development Board | Other | Statutory Board | Neutral | Neutral | Rajashree Rajan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Debbie Ong | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Herman Jeremiah | Dentons Rodyk & Davidson LLP |
| Mark Lewis Shan | Dentons Rodyk & Davidson LLP |
| Lee Chia Ming | Dentons Rodyk & Davidson LLP |
| Rajashree Rajan | HDB (Legal Group) |
| Jamal Siddique Peer | Shook Lin & Bok LLP |
4. Facts
- Dr. Paul made cash gifts of $2 million to Perumal in 2010.
- The court found Dr. Paul lacked mental capacity to make the gifts.
- Perumal was found to have exerted influence over Dr. Paul.
- Perumal used $329,812.55 of Dr. Paul's money to purchase an HDB flat.
- Perumal was in a fiduciary relationship with Dr. Paul.
- Perumal did not fully disclose relevant information to the court.
5. Formal Citations
- Philip Antony Jeyaretnam and another v Kulandaivelu Malayaperumal and others, Suit No 549 of 2015 (Taking of Accounts or Inquiries No 1 of 2018), [2019] SGHC 214
6. Timeline
| Date | Event |
|---|---|
| Suit filed | |
| Dr. Paul passed away | |
| Decision given in main suit in favor of the plaintiffs | |
| Trial for the taking of accounts heard | |
| Trial for the taking of accounts heard | |
| Trial for the taking of accounts heard | |
| Trial for the taking of accounts heard | |
| Trial for the taking of accounts heard | |
| Judgment reserved |
7. Legal Issues
- Constructive Trust
- Outcome: The court found that Perumal held the moneys he received from Dr. Paul under a constructive trust.
- Category: Substantive
- Sub-Issues:
- Breach of fiduciary duty
- Unconscionable conduct
- Equitable Lien
- Outcome: The court imposed an equitable lien on the HDB flat for $329,812.55.
- Category: Substantive
- Fiduciary Duty
- Outcome: The court found that Perumal was in a fiduciary relationship with Dr. Paul and breached his duties.
- Category: Substantive
- Sub-Issues:
- Breach of duty of loyalty
- Conflict of interest
8. Remedies Sought
- Declaration of Constructive Trust
- Order for Sale of Property
- Equitable Lien
9. Cause of Actions
- Breach of Fiduciary Duty
- Constructive Trust
10. Practice Areas
- Commercial Litigation
- Trust Litigation
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Westdeutsche Landesbank Girozentrale v Islington London Borough Council | House of Lords | Yes | [1996] AC 669 | England and Wales | Cited for the distinction between institutional and remedial constructive trusts. |
| Ching Mun Fong v Liu Cho Chit | Court of Appeal | Yes | [2001] 1 SLR(R) 856 | Singapore | Endorsed the distinction between institutional and remedial constructive trusts. |
| Guy Neale and others v Nine Squares Pty Ltd | High Court | Yes | [2015] 1 SLR 1097 | Singapore | Cited for the principle that the court should declare an institutional constructive trust as the property in question was dealt with in an unconscionable manner. |
| Bristol and West Building Society Mothew | Court of Appeal | Yes | [1998] Ch 1 | England and Wales | Cited for the test on who a fiduciary is. |
| Turf Club Auto Emporium Pte Ltd and others v Yeo Boong Hua and others and another appeal | Court of Appeal | Yes | [2018] 2 SLR 655 | Singapore | Cited for the definition of a fiduciary. |
| Angove’s Pty Ltd v Bailey and another | Supreme Court | Yes | [2016] 1 WLR 3179 | United Kingdom | Cited for the foundation of an institutional trust as being at least partly based on vitiated intention. |
| Low Heng Leon Andy v Low Kian Beng Lawrence (administrator of the estate of Tan Ah Kng, deceased) | High Court | Yes | [2013] 3 SLR 710 | Singapore | Cited for the operation of section 51(10) of the Housing and Development Act. |
| Bestland Development Pte Ltd v Manit Udomkunnatum and another | Court of Appeal | Yes | [1997] 1 SLR(R) 177 | Singapore | Cited for the definition of an equitable lien. |
| Hewett v Court | High Court of Australia | Yes | (1983) 149 CLR 639 | Australia | Cited for the definition of an equitable lien. |
| Hitachi Leasing (Singapore) Pte Ltd v Vincent Ambrose and another | High Court | Yes | [2001] 1 SLR(R) 762 | Singapore | Cited for the objective of section 51(6) of the Housing and Development Act. |
| Parakou Shipping Pte Ltd (in liquidation) v Liu Cheng Chan and others | High Court | Yes | [2017] SGHC 15 | Singapore | Cited for the remedies available against a substituted asset. |
| Wee Chiaw Sek Anna v Ng Li-Ann Genevieve | Court of Appeal | Yes | [2013] 3 SLR 801 | Singapore | Cited for the basis of a remedial constructive trust in Singapore law. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Housing and Development Act (Cap 129, 2004 Rev Ed) | Singapore |
| Housing and Development Act (Cap 129, 2004 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Constructive trust
- Equitable lien
- Fiduciary duty
- Mental capacity
- HDB flat
- Breach of trust
- Undue influence
15.2 Keywords
- constructive trust
- equitable lien
- HDB
- fiduciary duty
- Housing and Development Act
16. Subjects
- Trusts
- Real Property
- Equity
17. Areas of Law
- Trusts Law
- Equity
- Constructive Trusts
- Housing Law