Hewage Don Piyasena Owitigala v. Karunasena Hathurusinghe – SC APPEAL 41/2013-2014

In the case between Hewage Don Piyasena (deceased, substituted by representatives) and Karunasena Hathurusinghe, the court addressed whether Deed No. 3344 dated 17-11-1987 operated as an outright sale of land or created a constructive trust under the Trust Ordinance. It was held that the evidence, including the inadequacy of consideration and the conduct of the parties, did not support the existence of an absolute conveyance. The court determined that the deed established a constructive trust, setting aside the later High Court judgment and affirming the original District Court decision. The principle was reaffirmed that, irrespective of the deed’s form, the true intention of the parties and the equitable ownership must prevail, with reliance placed on statutory trust provisions and releva