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Halsbury's Laws of Malaysia - Wills, Probate, Administration and Succession/330 - Wills, Probate,
Administration and Succession/(3) Small Estates/(3) Procedure for Petition/ D. Order for Distribution

D. ORDER FOR DISTRIBUTION

[330.775]

Order
At the conclusion of the hearing, the Land Administrator1 must by his order2 make provision for the
payment out of the estate of the estate duty3, if any, and of funeral expenses and debts of the deceased,
wherever arising, and for the repayment to any person of any fees paid by that person and may, if
necessary, direct the whole or such part of the estate as he may specify to be sold and the expenses,
debts, fees and duty to be paid from the proceeds of the sale and subject thereto must distribute the
residue of the estate according to their respective shares and interests among the beneficiaries but
subject to the powers of the Land Administrator in distributing the estate 4. Where any movable property
comprised in a small estate has been administered by the Corporation, the Land Administrator may
accept any direction or declaration made by the Corporation in relation to the property 5.
1 For the meaning of 'Land Administrator' see [330.758] note 7.

2 The distribution order must be made in Form E set out in the Small Estates (Distribution) Regulations 1955 (LN 495 of
1955) Sch 1: reg 7(1). See Mohd Arshad bin Salleh v Yasin bin Ibrahim [1991] 3 MLJ 197, where the Collector of Land
Revenue (now known as Land Administrator) granted under the then Small Estates (Distribution) Ordinance 1955 (Ord No
34 of 1955) to the plaintiff letters of administration.

3 Estate duty is not payable in the case of a person dying as from 1 November 1991 in Malaysia, but estate duty as required
by statutory law as existing before 1 November 1991 would apply to the estate of any person dying before the coming into
force of the repeal of estate duty as if the appeal had not been made: see the Finance Act 1992 (Act 476) s 46 which
repealed the provisions of the Estate Duty Enactment 1941 (FMS 7/1941); Estate Duty Ordinance of Sabah (Sabah Cap 42);
Estate Duty Ordinance of Sarawak (Sarawak Cap 29); Finance (Estate Duty) Act 1965 (Act 29 of 1965); Finance (Estate
Duty) Act 1971 (Act 38); Finance (Estate Duty) Act 1979 (Act 219) and the Finance (Estate Duty) Act 1980 (Act 224) with
effect from 1 November 1991.

4 Small Estates (Distribution) Act 1955 (Act 98) s 13(1). See also Mamat bin Hassan v Siti Khatijah bte Awang Hamat
[1996] 5 MLJ 529. As to the powers of the Land Administrator in distributing the estate see s 15, and [330.782] and
following.

5 Small Estates (Distribution) Act 1955 s 13A (as inserted by the Small Estates (Distribution) (Amendment) Act 2008 s 9).

[330.776]

Minority interest
The Land Administrator1 must by his order direct the share of any infant beneficiary in any immovable
property to be registered in the name of a suitable person as trustee and must enter a caveat 2 to protect
his interest during minority3.
1 For the meaning of 'Land Administrator' see [330.758] note 7.

2 The entry of a caveat must be in Form HH set out in the Small Estates (Distribution) Regulations 1955 (LN 495 of 1955)
Sch 1: reg 8(2).

3 Small Estates (Distribution) Act 1955 (Act 98) s 13(2).

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[330.777]

Trust property
If the Land Administrator1 finds that the deceased was a trustee for any person of any land held in the
name of the deceased though not registered as such, he must, unless in any case he thinks it proper to
refer to the court, order the trust property to be transmitted to a new trustee or to the beneficiary as he
thinks fit, but without prejudice to any registered rights or interests in the land of any creditor of the
deceased or any person deriving title through the deceased 2.
1 For the meaning of 'Land Administrator' see [330.758] note 7.

2 Small Estates (Distribution) Act 1955 (Act 98) s 13(3).

[330.778]

Grant of letters of administration

If the nature of the case so requires, the Land Administrator 1 must instead of or in addition to making a
distribution order2, grant letters of administration3 to such person or persons as he thinks fit, subject to
such security as he may require and may in his discretion dispense with security 4. The letters of
administration will be subject to such limitations as the Land Administrator may think fit to specify in the
grant5.
If it appears that the estate is or is likely to be insolvent, the Land Administrator must grant letters of
administration to some fit person on behalf of the general body of creditors or else order the estate to be
administered in bankruptcy by the Director General of Insolvency 6.
1 For the meaning of 'Land Administrator' see [330.758] note 7.

2 For the meaning of 'distribution order' see [330.771] note 15.

3 Small Estates (Distribution) Regulations 1955 (LN 495 of 1955) reg 7(2); see also [330.760] note 2.

4 Small Estates (Distribution) Act 1955 (Act 98) s 13(4).

5 Small Estates (Distribution) Act 1955 s 13(4).

6 Small Estates (Distribution) Act 1955 s 13(7). See [300.254] note 8.

[330.779]

Claim of purchaser
If the Land Administrator1 finds that any person has proved to be a purchaser2 of any land registered in the
name of the deceased, he must by his order, transmit the land to the purchaser, subject to such conditions
as to the payment of any outstanding balance of the purchase money or otherwise as he may think fit to
impose3.
If in the opinion of the Land Administrator any person claiming to be a purchaser of any land registered in
the name of the deceased is not such a purchaser but is entitled to any sum as compensation or relief out
of the estate of the deceased, he must record a finding to that effect and must provide in the order for the
payment of that sum to that person as a debt of the deceased 4.
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1 For the meaning of 'Land Administrator' see [330.758] note 7.

2 For the meaning of 'purchaser' see [330.762] note 2.

3 Small Estates (Distribution) Act 1955 (Act 98) s 13(5).

4 Small Estates (Distribution) Act 1955 s 13(6).

[330.780]

Collateral dispute
A collateral dispute1 means a dispute as to whether:

1)  any property movable or immovable or any right or interest in any such property
forms part of the estate of the deceased;
1)  any person is entitled beneficially to any property movable or immovable or any right
or interest in any such property which the deceased at the time of his death held or was
entitled to hold as a trustee and not beneficially;
1)  any debt or liquidated sum in money is payable to any person claiming the same out
of the assets of the deceased or any debt or liquidated sum in money is due or payable by
any person to the estate of the deceased; and
1)  any share or any right or interest in any share of a beneficiary in the estate of the
deceased has been assigned to or vested in any other person, whether a beneficiary or not 2.

1 See Chu Chu Lock v Chu Mek Chuan [1977] 1 MLJ 119, where the court held that the plaintiff could not seek to bring an
action purportedly under the Collector's (now known as Land Administrator) direction because he was not a party to the suit
earlier and, therefore, had not locus standi.

2 Small Estates (Distribution) Act 1955 (Act 98) s 14(2).

[330.781]

Determination of collateral disputes

If in the course of the hearing1 it is certified by the Land Administrator2 to be necessary or desirable in the
interests of justice that any collateral dispute3 should be decided before a distribution order4 is made, the
Land Administrator may defer the making of any distribution order in respect of the estate or of that part of
the estate which in his opinion is or may be affected directly or indirectly by the determination of that
dispute and must cause the dispute to be determined in accordance with statutory requirements 5 in the
following manner:

2)  the Land Administrator must, after ensuring that all necessary parties are before him
or have had sufficient opportunity to attend, proceed to hear and determine the dispute 6 and
may make such order thereon as may be just7;
2)  the Land Administrator must apply to the hearing such modifications as may be
necessary8.
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Any such order made by a Land Administrator will have the same force and effect by such order made by
him9 and will be enforceable in the same manner as if it had been made by a court, but there will be no
appeal from such an order10 except as provided under the Act11.
1 As to the hearing of the petition for distribution see [330.771].

2 For the meaning of 'Land Administrator' see [330.758] note 7.

3 See eg Chu Chu Lock v Chu Mek Chuan [1977] 1 MLJ 119 (where the dispute could not be resolved by the Collector (now
known as Land Administrator) and the parties were asked pursuant to the then Small Estates (Distribution) Ordinance 1955
(Ord No 34 of 1955) s 14 to take the matter to court). As to collateral disputes see [330.780].

4 See Gurpal Singh v Kananayer [1976] 2 MLJ 34 (where the court held that in the event there are collateral disputes, the
Collector (now known as Land Administrator) may defer the making of any distribution order and is required to cause the
disputes to be determined by the courts in cases of immovable property or any right or interests therein). For the meaning of
'distribution order' see [330.771] note 15.

5 Ie pursuant to the Small Estates (Distribution) Act 1955 (Act 98): see s 14(1).

6 Where in the course of a distribution suit it becomes evident that a collateral dispute should be decided, the Land
Administrator must issue a certificate in Form L set out in the Small Estates (Distribution) Regulations 1955 (LN 495 of
1955) Sch 1 and file the same in the Distribution suit: reg 11.

7 Small Estates (Distribution) Act 1955 s 14(3).

8 See the Small Estates (Distribution) Act 1955 s 14(8).

9 Small Estates (Distribution) Act 1955 s 14(10).

10 Small Estates (Distribution) Act 1955 s 14(9).

11 Ie under the Small Estates (Distribution) Act 1955 s 29. See Fatimah binti Mat Akir v Sharifah binti Haji Ahmad [1977] 1
MLJ 106, FC (where the court held that the proper course for the appellants was to have appealed against the Settlement
Officer's Order, which they did not do, and therefore the application was rightly dismissed). As to appeal see [330.772].