Piyasena v. Don Vansue – sllr 1997 volume 2 page 311

In the case between PIYASENA (plaintiff-respondent) and DON VANSUE (defendant-appellant), the court addressed whether the conveyance of property by Deed No. 424 constituted an outright sale or operated as a security for a loan, thereby invoking section 83 of the Trust Ordinance to impose a constructive trust. It was held that, upon consideration of payment of notary and stamp fees, the parties’ conduct, and evidence relating to the transaction, the beneficial interest remained with the defendant-appellant despite the formal transfer. This interpretation reaffirmed the principle that when a property transfer camouflages a loan transaction, equity compels the holder to act as trustee for the borrower, as set out in section 83 of the Trust Ordinance. The decision emphasized that mere recitals