Aloysius Lazarus vs Leo Terrance Lazarus – CA NO. 1212/2000-2015

In the case between Aloysius Lazarus (deceased), represented by D.J.M. Dona Dorathi Ranjani Lazarus (plaintiff), and Naullage Admund Silva (defendant), the court addressed whether the transfer of land under Deed No. 2379 (P3) constituted an outright sale or was intended as security for a loan, creating a constructive trust. It was held that the property transfer functioned as security for a loan, not as an absolute sale, affirming the trial court’s order for re-transfer to the plaintiff. The principle reaffirmed was that inadequacy of consideration, continued possession by the plaintiff, and context may allow a purported sale to be recognized legally as a trust arrangement for security under Section 83 of the Trusts Ordinance, supported by the doctrine of unjust enrichment (laesio enormis)