Algama vs. Lankanayake – sllr 2021 volume 1 page 295

In Algama v. Lankanayake, the Supreme Court examined whether a constructive trust, allegedly arising from an oral arrangement and evidenced by a deed of transfer, survives a partition decree entered under the Partition Law. The appellate inquiry centered on statutory interpretation of Section 48(1) of the Partition Law and the Trusts Ordinance concerning the finality of partition decrees and the continuance of constructive trusts. It was held that a constructive trust is not extinguished by a partition decree, and the failure to assert such a trust claim during partition proceedings does not nullify its existence. The court reaffirmed the principle that equitable interests under constructive trusts endure beyond the finality of partition decrees unless clearly extinguished by operation of