Seyadu Mohamadu Mohamed Munas vs Sitti Patu Umma – SC APPEAL 195/2012-2017

In the case between Seyadu Mohamadu Mohamed Munas (Plaintiff) and Sitti Patu Umma (Defendant), the court addressed whether a property transfer deed, executed as security for a loan, gave rise to a constructive trust under Sections 83 and 98 of the Trusts Ordinance, and whether a subsequent deed transferring the property to the Plaintiff was valid. It was held that the Defendant did not intend to part with the beneficial interest in the property; hence, the beneficial interest was held by Lilian Ranaweera in trust for the Defendant. As a result, the subsequent transfer to the Plaintiff was deemed null and void. The court reaffirmed that, where a transfer is not intended to dispose of the beneficial interest but serves as security, a constructive trust arises. The Plaintiff failed to establi