Ceylinco Securities and Financial Services Ltd. (Now Nation Lanka Finance PLC) vs Watawala Kankanamlage Mahesh Padmakumara – SC/APPEAL/191/2018-2025

The court addressed whether a land transfer constituted an outright conveyance or was held as security for a loan. The court further examined whether the Defendant qualified for bona fide purchaser status under section 98 of the Trusts Ordinance, in light of conflicting testimony and deed irregularities. It was held that the transaction did not satisfy the conditions of good faith and valuable consideration necessary to invoke section 98 protection, and the appeal was dismissed without costs. This decision reaffirmed the principle that trust property cannot be claimed by subsequent transferees absent clear satisfaction of statutory requirements, with reliance placed on the evidence and statutory interpretation under the Trusts Ordinance, emphasizing strict compliance for bona fide purchase