Herath Mudiyanselage Priyanthi Winifreda vs. Senarath Abeysiri Yamilawatte Panilatenna – SC APPEAL 89/2017-2025

In the case between Herath Mudiyanselage Priyanthi Winifreda and Senarath Abeysiri Yamilawatte Panilatenna and D.G.N. Dhanahitiyawa, the court addressed whether Deed of Transfer No. 2357 amounted to an absolute transfer of property or constituted a transaction held in trust as security for a loan. It was held that, in light of oral and documentary evidence, including admissions by the parties, the transaction was intended as a security rather than an outright conveyance of title, giving rise to a constructive trust. The principle reaffirmed is that when evidence establishes a transfer as security, statutory provisions such as Sections 83 and 84 of the Trusts Ordinance and relevant sections of the Evidence Ordinance permit such arrangements to be recognized despite apparent absolute transf