Bhojwani v Bhojwani: Accounting of Estate Assets & Beneficiary Rights Under Discretionary Trusts
Lakshmi Prataprai Bhojwani, the Plaintiff, applied to the High Court of Singapore for an order compelling Moti Harkishindas Bhojwani, the Defendant and executor of the estate of Harkishindas Ghumanmal Bhojwani (the Testator), to provide an account of the Estate's assets. The Plaintiff, a beneficiary under the Will's discretionary trusts, sought the accounting as of the date of the Testator's death and the date of the application. The court dismissed the application, finding that the Defendant had sufficiently discharged his duty to account for the assets during his tenure as executor. The court ordered the Plaintiff to pay fixed costs of $2,000 to the Defendant.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's application dismissed.
1.3 Case Type
Probate
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiff seeks accounting of estate assets. Court dismisses application, finding Defendant sufficiently discharged duty as executor.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lakshmi Prataprai Bhojwani | Plaintiff | Individual | Application Dismissed | Lost | |
| Moti Harkishindas Bhojwani | Defendant | Individual | Application Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| George Wei | Judge | Yes |
4. Counsels
4. Facts
- The Plaintiff is a beneficiary under the Will of the Testator, her father-in-law.
- The Defendant is the executor of the Testator's Will and trustee over some of the Estate's assets.
- The Plaintiff is the wife of Jethanand, one of the Testator's sons, but they are undergoing divorce proceedings.
- The Will divides the Estate into three groups of assets, with each son as trustee for a group, benefiting his family.
- The Plaintiff is a beneficiary of assets for which her husband, Jethanand, is the trustee.
- The Defendant transferred Clause 5 Shares to Jethanand on 1 August 2008.
- The Defendant transferred the Property to the Plaintiff on 12 October 2016, as instructed by Jethanand.
- The Residuary Estate resulted in a net deficit, borne equally by the Defendant and Jethanand.
5. Formal Citations
- Lakshmi Prataprai Bhojwani(alias Mrs Lakshmi Jethanand Bhojwani)vMoti Harkishindas Bhojwani, Originating Summons No 1229 of 2017, [2018] SGHC 121
6. Timeline
| Date | Event |
|---|---|
| Testator passed away | |
| Grant of probate issued to Defendant | |
| Defendant transferred Clause 5 Shares to Jethanand | |
| Plaintiff conducted title search on the Property | |
| Defendant transferred the Property to the Plaintiff | |
| Divorce proceedings filed by Plaintiff | |
| Plaintiff sent a formal request to the Defendant for a full account of the part of the Estate in which she has an interest | |
| Defendant responded stating that he did not owe the Plaintiff a duty to account | |
| Plaintiff filed Originating Summons No 1229 of 2017 | |
| Hearing concluded; Plaintiff’s application dismissed | |
| Grounds of Decision furnished |
7. Legal Issues
- Duty to Account
- Outcome: The court held that the Defendant, as executor, had a duty to account to the Plaintiff, a beneficiary, for the period he acted as executor and trustee, but found that he had sufficiently discharged this duty.
- Category: Substantive
- Sub-Issues:
- Scope of duty to account
- Continuous duty to account
- Sufficiency of account provided
- Related Cases:
- [1988] 1 Ch 414
- [2016] SGHC 260
- [2017] SGHC 90
- [2012] 4 SLR 339
- Fiduciary Duties of Executors and Trustees
- Outcome: The court found that even if the Defendant had breached his fiduciary duties by not informing the Plaintiff of her interest, the breach did not warrant ordering an account.
- Category: Substantive
- Sub-Issues:
- Breach of fiduciary duty
- Duty to inform beneficiaries
- Best interests of beneficiaries
- Related Cases:
- [2012] 4 SLR 339
- Rights of Discretionary Beneficiaries
- Outcome: The court held that the Plaintiff, as a named discretionary beneficiary, had an identifiable interest in the Estate and was prima facie entitled to an account.
- Category: Substantive
- Sub-Issues:
- Identifiable interest in the estate
- Right to be considered as a potential recipient of benefit
- Right to have interest protected by a court of equity
- Related Cases:
- (1992) 29 NSWLR 405
- [1968] AC 553
8. Remedies Sought
- Account of Estate Assets
9. Cause of Actions
- Breach of Fiduciary Duty
- Failure to Provide Account
10. Practice Areas
- Trusts and Estates Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Attorney-General v Cocke and Another | Ch | Yes | [1988] 1 Ch 414 | England and Wales | Cited for the principle that the fiduciary relationship between an executor and beneficiaries provides the basis for the duty to account. |
| Foo Jee Boo and another v Foo Jhee Tuang and others | High Court | Yes | [2016] SGHC 260 | Singapore | Cited for the duty of executors to keep proper accounts of the administration of the estate and to furnish such accounts to beneficiaries upon request. |
| Hartigan Nominees Pty Ltd and Another v Rydge | New South Wales Supreme Court | No | (1992) 29 NSWLR 405 | Australia | Discussed in relation to the distinction between named beneficiaries and possible beneficiaries of a discretionary trust and their respective rights to an account. |
| Gartside and Another v Inland Revenue Commissioners | House of Lords | Yes | [1968] AC 553 | United Kingdom | Cited to support the principle that a beneficiary under a discretionary trust has an interest in that he has the right to be considered as a potential recipient of benefit by the trustees and a right to have that interest protected by a court of equity. |
| Lalwani Shalini Gobind and another v Lalwani Ashok Bherumal | High Court | Yes | [2017] SGHC 90 | Singapore | Cited to argue that a trustee’s duty to account is a continuous one, and that the transfer of trust assets to new trustees does not obviate the original trustee’s duty to account. |
| Lee Yoke San and another v Tsong Sai Sai Cecilia and another | Court of Appeal | Yes | [1992] 3 SLR(R) 516 | Singapore | Cited for the principle that an executor steps into the shoes of a trustee once he has discharged his duties of calling in and collecting the assets of the estate and paying off all necessary funeral, testamentary and estate expenses and liabilities. |
| Chiang Shirley v Chiang Dong Pheng | High Court | Yes | [2015] 3 SLR 770 | Singapore | Observed that whether the trustee/personal representative has complied with his duty to supply documents and information is a fact-sensitive exercise in every case. |
| Chng Weng Wah v Goh Bak Heng | Court of Appeal | Yes | [2016] 2 SLR 464 | Singapore | Stated that the court may be able to draw an inference, on a balance of probabilities, that settled accounts have already been provided. |
| Foo Jee Seng and others v Foo Jhee Tuang and another | Court of Appeal | Yes | [2012] 4 SLR 339 | Singapore | Clarified that a trustee’s duty to account is not contingent on there being a breach of the trustee’s fiduciary duties. |
13. Applicable Rules
| Rule Name |
|---|
| Order 80 Rule 2 of the Rules of Court (Cap 322) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Trustees Act (Cap 337, 2005 Rev Ed) | Singapore |
| Rules of Court (Cap 322) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Discretionary Trust
- Executor
- Trustee
- Beneficiary
- Duty to Account
- Residuary Estate
- Clause 5 Shares
- Originating Summons
15.2 Keywords
- trust
- estate
- probate
- fiduciary duty
- accounting
- beneficiary
- executor
- trustee
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Estate Administration | 95 |
| Wills and Probate | 90 |
| Trust Law | 85 |
| Corporate Governance | 10 |
16. Subjects
- Trusts
- Estates
- Probate
- Fiduciary Duty
- Accounting