A.M.Nawaratne Amarakoon vs Sita Hapuarachchi – CA NO.396A/98-2014

In the case between Sita Hapuarachchi (plaintiff-respondent) and A.M. Nawaratne Amarakoon (1st defendant-appellant) with P.K. Bernard Dias (2nd defendant-appellant, substituted), the legal issue centered on whether the 1st defendant held certain disputed lands in trust for the plaintiff under Section 84 (and possibly Section 96) of the Trusts Ordinance, having regard to the claim that the plaintiff’s father provided the purchase money. It was held that a constructive trust under Section 84 can be claimed only by the provider of the purchase money and not by a third party or an heir such as the plaintiff. The principle reaffirmed is that constructive trusts arise strictly based on who provides the consideration, and this right does not extend to heirs. The decision relied on the statutory l