SUPRAMANIAN CHETTY v. GUNEWARDENE et al.

SUPRAMANIAN CHETTY v. GUNEWARDENE et al.

D. C. Matara, 26,193.

 

Deed of gift-Fraud on creditors -Donor in possession of property gifted- Solvency of donor-Gifting away all property belonging to donor- Secret execution-Effect of registration as disproving secrecy -Evidence of conspiracy against creditors.

Neither a donation nor a sale would be considered fraudulent if the donor or vendor wore solvent at the time he made it; but the gift by a solvent person of the whole or of the bulk of his property made deliberately intending to contract debts with people who might believe him to be still the possessor of that property, and so to defraud them, should be held to be a fraudulent transaction.

The prompt and regular registration of a deed of gift is a circumstance which shows that the gift was not fraudulently made, inasmuch as it removes secrecy, which is the usual badge of fraud, and affords every opportunity for any party to ascertain that the property gifted by it has passed from the donor to the donee; and the fact of a donor remaining in possession with his children of a part of his property gifted by him to them

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