Abeygunasekara vs Malkanthi and Others – sllr 2014 volume 1 page 121

In AbeYgunasekara (Appellant) v. Malkanthi and others (including the 2nd Defendant, who executed deed P3), the court addressed whether deed No. 1449 (P3) constituted a bona fide transfer of title or was executed merely as security (a mortgage), and whether damages could be awarded in the absence of a relevant pleading or evidence. The findings established that the deed, although facially a transfer, was invalid due to grossly inadequate consideration—Rs. 18,000 paid against a property valuation of Rs. 114,200—indicating the real value was not received by the vendor. Furthermore, the award of damages was set aside as such relief was neither pleaded nor supported by the evidence. The principle reaffirmed emphasized that a defect in title in a foundational deed invalidates all subsequent tran