24 May 2011

Resulting Trust

Many Klang Valley road users, purchase the service of Touch & Go (T&G). T&G, usually associated with Toll Roads, are also now used to pay car park entry and to get a ride on the LRT trains.

How it works is that a person will pay a certain credit amount, and whenever the user touch the T&G card on the T&G panels, certain money will be taken up.

Unlike Singapore, where the cash card is virtually owned by the Singapore Government, T&G in Malaysia is privately owned. This leads to an interesting question; If that Company which owns T&G is wound-up, who owns the money paid by the consumer of the T&G (but yet to be credited)?

So if you have RM100 balance in your T&G card, and if the owner Company collapses tomorrow, do you have a claim over that RM100 or, can the Receiver/Liquidator of that Company claim that the unused credit belongs to T&G?

Using the concept in Law of Trust, particularly Resulting Trust; it is likely that the said money should be returned to you. The logic would be that the PURPOSE and INTENT of that money paid to T&G is for you to use the services of T&G. So until such time you use that services, the money you paid is merely an upfront money, which is basically kept on Trust by that company. So long as you have not used T&G's services, it can be contended that the said money is still yours.

*kindly take note, this is merely an academic example, for purposes of discussion and understanding of the Law of Trust, particularly the concept of Resulting Trust. In no way are we insinuating that Touch & Go or any company related to it is wound up or will be wound up.