K. Gunarath Manike vs K.A. Abeyrathne – CA NO. 684/98 F-2014

The case between K. Gunarath Manike (Appellant) and K.A. Abeyrathne (Respondent) concerned whether deed No. 1741 dated 15.01.1976 constituted an outright transfer of land or was executed as security for a loan, engaging the application of Section 83 of the Trust Ordinance. The holding confirmed that the deed was in fact executed as security rather than functioning as an outright sale, with Section 83 permitting the inference of a trust relationship based on the parties’ true intentions and the circumstances surrounding the transaction. Reliance was placed on relevant precedents, including Thisa Nona v. Premadasa and Piyasena v. Don Vansue, which enable courts to look beyond the terms of a deed to assess the parties’ genuine intention. The decision reinforced the principle that courts may r