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High Court declines to order HDB flat sale of man who got $2m from doctor with dementia

High Court declines to order HDB flat sale of man who got $2m from doctor with dementia.

SINGAPORE - A construction worker, who was given $2 million by a retired doctor with dementia, used about $330,000 of the money to pay for an HDB flat.

Despite finding that Mr Kulandaivelu Malayaperumal should return the money which had been given to him by someone lacking the mental capacity to do so, a High Court judge said she would not order him to sell the flat.

In an oral judgment released on Tuesday (Sept 17), Justice Debbie Ong said the reason is the man's wife is a joint owner of the flat.

The judge, however, imposed what is known in legal terms as an "equitable lien" - a legal right granted to a creditor over the debtor's property - on the flat.

"It is possible to impose an equitable lien but still preserve the home of the HDB dwellers until an event (such as a voluntary sale) occurs where sale proceeds can be used to satisfy the equitable lien," she said.

To read more: https://www.straitstimes.com/singapore/high-court-declines-to-order-hdb-flat-sale-of-man-who-got-2m-from-doctor-with-dementia

Adapted from The Straits Times 17 September 2019