Ranatunga Arachchige Hemachandra Ranatunge vs Mallika Appuhamilage Nandasiri – CA NO.1025/2000-2013

In the case between Ranatunga Arachchige Hemachandra Ranatunge (Respondent) and Mallika Appuhamilage Nandasiri (Appellant), the court addressed whether the property transferred by Deed No. 152 dated 09.06.1986 was held by the Appellant in trust for the Respondent or constituted an absolute transfer. It was held that the transfer, while formally executed as a conveyance, was intended merely as security for a loan, with beneficial ownership not passing to the Appellant. The principle reaffirmed is that extrinsic or parol evidence is admissible to reveal attendant circumstances and establish a resulting or constructive trust under Section 83 of the Trusts Ordinance despite the Prevention of Frauds Ordinance. Reliance was placed on Supreme Court precedents, underscoring that the true intent of