N 0 Rajanetti and W.O. Chandra Fernando nee Jayaratna Gamini Malwanna v. Harischanra P Jayasooriya – CA 767/96A-2011
In the case between Harischandra P Jayasooriya (Plaintiff-Respondent) and N.D. Rajanetti, W.D. Chandra Fernando nee Jayaratna, and Gamini Malwanna (Defendant-Appellants), the court addressed the issue of whether the 2nd and 3rd defendants held the subject land in trust for the benefit of the plaintiff. It was determined that the district court erred in declaring a trust based on an informal agreement, failing to apply the proper legal principles set out in the Trust Ordinance, which precludes the establishment of secret trusts against bona fide purchasers. The judgment reaffirmed the necessity of strict evidentiary standards and statutory compliance in the recognition of express or constructive trusts concerning immovable property. This decision relied on the provisions of the Sri Lankan T

