Savithri Rajakaruna and others vs. Millaniyage Chandra Jayawathie Perera – SC Appeal 24/2022-2025

In the matter of Plaintiff Millaniyage Chandra Jayawathie Perera and Defendants Savithri Rajakaruna and Vinitha Rajakaruna (and their legal representatives), the court addressed the issue of whether a property transferred by Deed No. 1455 was held in trust as security for a loan or constituted an outright sale, and the applicability of Sections 83 and 84 of the Trusts Ordinance. The Supreme Court held that Section 83 was inapplicable as a trust does not automatically transfer to subsequent transferees and the Plaintiff was not the direct transferor to the 1st Defendant. Section 84 was also deemed inapplicable because the Plaintiff did not provide the consideration for the transfer. The court further determined that the 1st Defendant was a bona fide purchaser for value without notice, reaff