Hettiarachchige Don Sugath Nandana vs Caroline Hewa Abewickrama – SC APPEAL 18/2021-2022

In the case between Hettiarachchige Don Sugath (and associated parties) and Caroline Hewa Abewickrama (and associated parties), the court addressed the issue of whether deed P2 effected an outright transfer of property or established a transfer subject to a constructive trust. It was held that a constructive trust existed, as the surrounding circumstances—including inadequate consideration, retention of possession by the transferor, and documentary evidence—demonstrated that beneficial interest was not intended to be transferred. The principle reaffirmed is that an ostensible transfer of property may be declared subject to a constructive trust if the parties’ real intentions, as evidenced by conduct and circumstances, prove that the transfer was not absolute. The decision relied on section