G.C.Karunaratne Perera vs P.U.Sanath Fernando and P.U.Navaratne Fernando – SC APPEAL 8A/09-2011

In the case between G.C. Karunaratne Perera and P.U. Sanath Fernando and P.U. Navaratne Fernando, the court addressed whether Deeds No. 147 and No. 581 constituted absolute transfers of property or merely created a constructive trust in favor of the plaintiff. It was held that the circumstances and evidence demonstrated no intent by the plaintiff to relinquish beneficial interest, and the property transfers, despite their facial appearance, amounted to the creation of a constructive trust. The appellate decision that deemed the transfers absolute was set aside, and the District Court’s ruling was reinstated with a modification regarding the interest period. The decision reaffirmed the principle that transfer documents, even if drafted as absolute, are subject to the parties’ true intent an