Manawaduge Ebert vs Walpitagamage Darmadasa – CA NO. 721/2000-2011

The case between Manawaduge Ebert (Plaintiff/Respondent) and Walpitagamage Dharmadasa alias Berti de Silva alias Berti Silva (Defendant/Appellant) addressed whether deed No. 6261, by which land was transferred to the Plaintiff/Respondent, constituted an outright sale or was intended merely as security for a loan, thereby creating a constructive trust under Section 83 of the Trusts Ordinance. It was held that the transfer was an outright sale and no constructive trust arose following the Defendant/Appellant’s failure to exercise the right of re-purchase within the stipulated period. The court reaffirmed the principle that where an agreement provides for re-purchase within a specified time, failure to act within that period forecloses any claim to a continuing beneficial interest. Reliance w