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High Court of Fiji |
IN THE HIGH COURT AT SUVA
CENTRAL DIVISION
CIVIL (PROBATE) JURISDICTION
HPP Action No. 61 of 23
(LA No. 67323)
IN THE ESTATE OF SHRI RAMLU aka SIRI RAMLU aka SHIRI RAMLU aka SIRI RAMLU, deceased, of Navo, Nadi, Testate.
IN THE MATTER of Probate No. 70901 granted on 21st day of January 2023.
AND
IN THE MATTER of an Application pursuant to Section 35 of the Succession Probate and Administration Act of 1972
IN THE MATTER of an Application pursuant to Order 85 of the High Court Rules 1988.
BETWEEN:
AMRIT ARVINDRAN NAIR, ASHMI NAIR AND ASHWINI ANURUPA MANI NAIR
PLAINTIFFS
AND:
ROHIT RAJENDRAN NAIR
DEFENDANT
Date of Hearing : 5th October 2023
For the Plaintiffs : Mr. Siwan K.
For the Defendants : Mr Maopa T.
Date of Decision : 15 January 2024
Before : Levaci SLTTW, Acting Puisne Judge
JUDGEMENT
(APPLICATION ON ORIGINATING SUMMONS – REMOVAL OF EXECUTOR AND APPOINTMENT OF NEW TRUSTEES)
Cause and Background
“4. That our father, the late Shiri Ramlu aka Siriamlu aka Shiri Ramlu aka Siri Ramlu (hereinafter referred to as “deceased”) died testate on the 17th of November 2022 and a Probate was issued in favour of the defendant on the 31st of January 2023 vide Probate Registration Number 70901 (hereinafter referred to as “the Probate”) (Annexed hereto is a Copy of the Probate Registration Number 70901 dated 31st day of January 2023 marked as “AAN-03);
5. That pursuant to the Will annexed in the said Probate the following issues were particularized:
ASSETS OF ESTATE
6. That the Deceased had the following Assets on his name during his lifetime therefore, it is part of the Estate:
a) Crown Lease Number 22842;
b) Native Lease Number 16739
c) Motor Vehicle Registration Number DR 167;
d) Motor Vehicle Registration Number FK 932;
e) Motor Vehicle Registration Number FT 771.
10. That from the date of death of the Deceased, the issuance of the Probate in the name of the Defendant until March 2023, the Defendant, upon being continuously followed up and queried by the Plaintiffs, had somhow showed and maintained he income and expenses wherein, a Bank Account in the ANZ Bank was opened by the Defendant, wherein, it was agreed between the parties that all the income from the rental obtaining from the Commercial Property must be deposited in the ANZ Account.
11. That initially, the Defendant, after successfully distributing the $30,000 to each party held into the Fixed account, made comment regarding that he has completed the distribution as per the Will of the Deceased and later on, made threatful comments of the Plaintiff when we questioned him on the income and expenses of the Estate.
12. THAT we had then instructed our Solicitors, Messrs Rams Law of Nadi to issue a 7 day Demand Notice to the Defendant to provide the Accounts of the Estate from April and May, 2023 regarding the Income and expenses of the Estate of the Defendant has chased out the Third Named Plaintiff out of Estate Residential Dwelling situated at Navo, Nadi where the 3rd Named Plaintiff had resided from birth. (Annexed hereto is the Copy of the Demand Notice dated 08th day of June, 2023 which was served on the Defendant on the 09th day of June, 2023 marked as AAN-05)
13. THAT I am being advised by my Solicitors and I verily believe that the Defendant, through the Solicitors, vide a letter dated 15th June 2023 had requested for further 7 days to respond to the issues raised in the Demand Notice (Annexed hereto is a Copy of a Letter dated 15th June 2023 marked as AAN-06)
14. THAT on the 20th day of June 2023 our Solicitors, on our instructions had issued a letter to Messrs Babu Singh and Associates informing them that the Defendant should be aware that the Plaintiffs are also the beneficiaries of the Estate and that it has been over 10 days since the service of the Demand Notice and that the Defendant had not made any attempts to administer the Estate accordingly which has 2 Properties and 3 vehicles and went on to the extent of forcefully removing the Third Named Plaintiff from the Residential Dwelling therefore, a time frame until close of business on the 21st day of June 2023 was given to the Defendant to provide the particulars as per the Demand Notice (Annexed hereto is a Copy of the Letter dated 20th day of June, 2023 marked as “AAN-07”).
15. THAT I am being advised by my Solicitors and I verily believe that on the 21st day of June 2023, the Defendants Solicitors, Messrs Babu Singh and Associates, through a letter dated 21st day of June 2023 whilst admitting, transferring the Subject Vehicle on the Defendants name, using obscene Language and that the Defendant suffers from high blood pressure and is sickly person and had provided an improper estate account wherein, he had failed to show the actual sum being paid by the Tenants on the Commercial Property and Expenses which the Estate had to bear on the Commercial Property (Annexed hereto is a Copy of the letter dated 21st day of June 2023 marked as “AAN-08”)
16. THAT I am advised by my Solicitors and I verily believe that Defendant, through its Solicitors vide the said letter dated 21st June 2023 had annexed a vague list of expense (with receipts/invoices) of the Estate without providing Evidence of Rental income received from the Months of April, May, June 2023 and only stated that the Estate had an ANZ Bank Account which had a balance in the sum of $26,639.43 whilst the Estate Income generates in the sum of $11,900.00 as had been admitted by them whilst the calculations for the 3 months should sum up to $37,500.00. (Annexed herto is a copy of the Estate of Shri Ramlu – List of Expenses marked as “AAN-09”)
17. THAT from my understanding and scrutinizing of the expenses which has 30 entries, I am aware that the majority of the items listed for the expenses did not take place on the Commercial Property rather, at the Residential Dwelling situated in Navo, Nadi wherein, there is a major renovation taking place on that property from the Estate Expense for which, our entitlement is being utilized as well as unnecessary expenses on Estate Vehicles which are under the Defendants name (Annexed hereto are the Copies of the receipts marked from “1 to 30” marked as “AAN-10”):
PARTICULARS
18. That based on the above, our Solicitors on our instructions, vide letter dated 27th of June 2023, had informed the Defendant Solicitors of the particulars as per paragraph 17 hereinabove and had further notified them that the Defendant had used grumpy and forceful nature of attitude towards the Third Named Defendant whilst she was having her meal on the basis that the Defendants daughter in law does not like the Third Named Defendant having her meal at the Dining Table on the Residential Dwelling wherein, the behavior of the Defendant was unreasonable and not equal to mankind. We had also given them option to buy the Shares of the Vehicle, provide the Bank Statement of the Estate, add myself as another Trustee, and provide the quarter payments as agreed to by all the parties for April May June 2023, as such payments took place until March 2023 however the Defendant failed to consider the same (Annexed hereto is a Copy of the Letter dated 27th day of June, 2023 marked as AAN-11).
PART C: SUBMISSIONS BY PARTIES
“Court has the general jurisdiction to remove trustees and substitute others where the welfare of the beneficiaries and of the trust estate requires such a remedy that is where the Court considers that the continuance of the trustee in the trust would prevent the proper execution of the trust”.
“[12] The Court would be inclined to accept the argument of the Defendant. An application to remove the Defendant from her entitlement under section 7 (a) of Succession, Probate and Administration Act shows that there is an ongoing dispute between the parties to this action. The Summons seek to distribute the 1/3 of Estate to the Defendant and remaining 2/3 to the Plaintiff. Hence the action should have been initiated by way of Writ under Order 76 Rule 2 (1).
[13] The Court has discretion to allow the Plaintiff to continue this action as if had been begun by way of Writ pursuant to Order 28 Rule 9 (1). I reiterate that the Originating Summons has not appropriately shown the legal basis to initiate this action. During the hearing the Court noted that there are some undisclosed facts in the affidavits relating to the history of this dispute which in my view pertinent for a determination. Therefore the Court declines to make an order to convert this action to a Writ.”
Part D: Law on Administration of Estates
Order 85 Rule 2 of the High Court Rules
“(2) without prejudice to the generality of paragraph (1), an action may be brought for the determination of any of the following questions:-
(a) Any question arising in the administration of the estate of a deceased person or in the execution of a trust;
(c) any question as to the rights or interests of a person claiming to be a creditor of the estate of a deceased person or to be entitled under a will or on the intestacy of a deceased person or to be beneficially entitled under a trust.”
‘(3) Without prejudice to the generality of paragraph (1), an action may be brought for any of the following reliefs –
(e) an order directing an act to be done in the administration of the estate of a deceased or in the execution of a trust which the Court could order to be done if the estate or trust were being administered or executed, as the case may be, under the direction of the Court.”
“4. In an administration action or such an action as is referred to in rule 2, the Court may make any certificate or order and grant any relief to which the plaintiff may be entitled by reason of any breach of trust, wilful default or other misconduct of the defendant notwithstanding that the action was begun by originating summons, but the forgoing provision is without prejudice to the power of the Court to make an order under Order 28, rule 9, in relation to the action.”
‘This Order deals with the actions of the administration of the estate of a deceased person, for the execution of a trust, for the determination of any question arising in the course of administration or in connection with a trust and cognate matters. The Order emphasizes that the list of questions and orders set out therein are not intended to be comprehensive.
The Originating Summons has a life of its own under O.5 r.1 and can be used for any appropriate purpose. Unless the plaintiffs claim is based on allegation of fraud originating summons will normally be the correct document for initiating proceedings with regard to the domestic affairs of an estate or trust (o 85, r.4). If however, the proceedings relate to a breach of trust or wilful default on the part of a trustee which can be specified with some precision and there is likely to be a substantial dispute of facts, the proceedings should be commenced by writ so that the trustee shall have available to him the full machinery for discovering precisely the charges against him (Re Sir Lindsay Parkinson & Co Ltd Settlement Trusts (1965) 1 WLR’ (underlining my emphasis)
Court may remove executor
35. The court may for any reason which appears to it to be sufficient, either upon the application of any person interested in the estate of any deceased person or of its motion on the report of the Registrar and either before or after a grant of probate has been made-
(a) make an order removing any executor of the will of such deceased person from office as, such executor and revoking any grant of probate already made to him; and
(b) by the same or any subsequent order appoint an administrator with the will annexed of such estate; and
(c) make such other orders as it thinks fit for vesting the real and personal property of such estate in the administrator and for enabling the administrator to obtain possession or control thereof; and
(d) make such further or consequential orders as it may consider necessary in the circumstances.”
PART E: ANALYSIS
Preliminary objections: wrong form and wrong application in the High Court Rules
“Probate practice in Fiji is now governed by Order 76 of the High Court Rules 1988 made by the Chief Justice pursuant to the powers under s.25 of the (then) Supreme Court Act (Cap 13). The reference to non-contentious business in rule 1 of the Order does not include a dispute over a grant of administration between next of kin of the same entitlement, which clearly must be a contentious matter. Englush practice with non –contentious business is recognized to some extent in our 0.1, r.11...”
“It is plain from the contents of the summons that it was contentious at the time it was issued, because the respondent sought in addition to her appointment, her brothers removal as administrator. That part of the application was adjourned by Fatiaki J, when he made an order for her appointment and was subsequently dismissed without objection from her, but its inclusion at the outset demonstrates an ongoing dispute between them concerning this estate.”
“15. This particular provision of the law deals with various types of applications defined within the ‘Probate Action’ but, does not have or allow for the provision for an action for the “Removal and Discharge” of the current Executor and Trustee as sought for in the current application before this Court by the Plaintiff.
16. Therefore, the Defendant’s preliminary objection that the present application was a contentious Probate Action which must be begun by a Writ Action fails and accordingly dismissed.”
“23. The estate has slipped through two generations of administrators without fruitful steps to satisfy the beneficiaries. It is evident that the plaintiffs are dissatisfied with the prevailing state of affairs including the conveyances and allocations said to have been made out of the estate in the past. Significant disputes of facts are likely in these circumstances. In my view a fuller inquiry with material evidence may reveal the steps needed to be taken by the eventual administrators in satisfying the various beneficiaries who may or may not be before court”.
Allegation of failure to properly administer and devolve the property
In Vol. 48 of Halsbury's Laws of England (4th ed.) the learned authors set out the duty of a trustee to provide information to a beneficiary in the following paragraph:
"830. A trustee must furnish to a beneficiary, or to a person authorized by him, on demand, information ... as to the mode in which the trust property or his share in it has been invested or otherwise dealt with, and as to where it is and full accounts respecting it, whether the beneficiary has a present interest in the trust property or only a contingent interest in remainder, or is only an object of a discretionary trust.”
“That a trustee has a duty to provide beneficiaries with accounts there can be no doubting. In Re Watson (1904) 49 Sol. Jo. 54 Kekewich J. speaking of the duty said:
"The duty of a trustee is three-fold: there is a duty to keep accounts, the duty to deliver accounts and the duty to vouch accounts ... The duty to keep accounts is an essential duty, he must keep such accounts so as to be able to deliver a proper account within a reasonable time showing what he has received and paid."
In similar vein and a good deal earlier Stuart V.C. said in Kemp v. Burn (1863) 141 RR 225, 226:
"... Where an account is demanded of trustees ... by a residuary legatee, there seems no doubt what the duty of the (trustee) is. Their duty is to keep proper accounts, and to have them always ready when called upon to render them."
“Power of Court to appoint new trustees
73.-(1) The Court may, whenever it is expedient to appoint a new trustee or new trustees, and it is inexpedient, difficult or impracticable so to do without the assistance of the Court, make an order for the appointment of a new trustee or new trustees, either in substitution for or in addition to any existing trustee or trustees, or although there is no existing trustee.
(2) In particular, and without limiting the generality of the provisions of subsection (1), the Court may make an order appointing a new trustee in substitution for a trustee who-
(a) desires to be discharged;
(b) has been held by the Court to have misconducted himself in the administration of the trust;
(c) is convicted of any misdemeanour involving dishonesty, or of any felony;
(d) is a person of unsound mind;
(e) is bankrupt; or
(f) is a corporation that has ceased to carry on business, or is in liquidation, or has been dissolved.
(3) An order under the provisions of this section, and any consequential vesting order or conveyance, shall not operate further or otherwise as a discharge to any discharged, former or continuing trustee than an appointment of new trustees under any power for that purpose contained in any instrument would have operated.
(4) Nothing in this section contained shall confer power to appoint an executor or administrator.
(5) Every trustee appointed by the Court shall have, before as well as after the trust property becomes by law or by assurance or otherwise vested in him, the same powers, authorities and discretions, and may in all respects act, as if he had been originally appointed a trustee by the instrument (if any) creating the trust.”
Orders of the Court
..........................................
Mrs SLTT W Levaci
Acting Puisne Judge
15.01.24
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