SAROJA NISANSALA V ABERFOYLE

SAROJA NISANSALA V. ABERFOYLE

SUPREME COURT
DR. SHIRANI A. BANDARANAYAKE , CJ.
SRlPAVAN, J. AND
IMAM,J.
S.C. (APPEAL) NO, 82/2009
S.C(H.C.) C .A.L .A. NO. 35/2009
SP/ HCCA/ KAG/ 248 / 2007(F)
D.C. MAWANELLA NO. 529/L
JUNE 10TH, 2010

Trusts Ordinance - Section 4(1) - A trust may be created for any lawful purpose - Section 98 - Saving rights of bona fide purchasers - Finance Act - Section 58(A), 59 - Recovery of the tax deemed to be in default - In pari delicto potior est condition defendantis.

The appeal was agued on the basis of the following questions:

1. Could the Plaintiff - Respondent in the circumstances of the case, plead a constructive trust?

2. Is the trust alleged by the Plaintiff - Respondent contrary to the provisions in Sections 4(1) and 98 of the Trust Ordinance?

The two questions referred to above indicate that the issue in question is as to whether a purchase of a property by a third party for and on behalf of a foreigner allegedly in order to evade the payment of 100% tax on the sale, could create a constructive trust on the basis of Sections 4(1) and 98 of the Trust Ordinance.

Held:

(1) No material had been adduced b

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