K. L. Eward Udayasiri Perera v. Bomiriyage Dharmasiri Perera – CA NO.S16/98-1998

In Bomiriyage Dharmasiri Perera v. K. L. Eward Udayasiri Perera and Finco (Property Sales) Limited, the court examined whether the land described in the second schedule of the plaint was held on trust for the plaintiff, given that the purchase funds were provided by the plaintiff but title was transferred to the 2nd defendant. It was held that a constructive trust arose in favor of the plaintiff under Section 84 of the Trust Ordinance, as the factual circumstances showed that the plaintiff paid the substantial part of the purchase price, and there was no substantiated evidence that the 2nd defendant provided consideration or that the property was meant as a gift. The principle reaffirmed was that where property is transferred to one person but paid for by another (absent intent to gift), l