Perera vs Fernando and Another – sllr 2011 volume 2 page 192

In the case between the Plaintiff (original owner) and the 1st and 2nd Defendants (transferees), the court addressed whether property transferred under two deeds constituted outright transfers or was held under a constructive trust pursuant to Section 83 of the Trusts Ordinance. The court held that, despite the deeds’ ostensible absolute nature, a constructive trust existed in favor of the Plaintiff because the evidence established that beneficial ownership was not intended to be parted with. This judgment reaffirmed the legal principle that, where an apparent transfer is not intended to defeat the transferor’s beneficial interest, a constructive trust arises under the relevant statutory provisions. The decision rested on a detailed evaluation of the factual circumstances, including the na