Sanmugam and Another v. Thambiaiyah – sllr 1987 volume 1 page 357

In the case between Sanmugam and Another (plaintiffs) and Thambiaiyah (defendant), the court addressed whether the endorsement and assignment of a promissory note constituted valid payment for the re-transfer of property interests and whether the plaintiff, as a bona fide purchaser for value and without notice, was entitled to hold property free from a previously agreed conditional re-transfer. It was held that the endorsement of the promissory note did not amount to effective payment or discharge of the conditional obligation for re-transfer due to lack of valid endorsement and acceptance. The protection of bona fide purchasers was reaffirmed under sections 93 and 98 of the Trusts Ordinance, with the principle that constructive notice arises only where proper registration reveals relevant