1956 Present: Pulle, J., and Weerasooriya, J.

DE SILVA et al, Appellants, and SILVA et al., Respondents

S.C. 159?D. C, Matara, 22,869 L

Trusts-Transfer of property to defraud creditors-Constructive trust-Elements necessary-In pari delicto potior est conditio possidentis-Rule against unjust enrichment-Trusts Ordinance, ss. 82, 83.

A executed a conveyance of certain lands in favour of B intending to transfer to B not only the legal title to the lands but also the beneficial interest in them so as to put them beyond the reach of his creditors, fully believing that in due time B, in whom A had complete confidence, would effect a re-transfer of the same lands in favour of A.

In the present action A's intestate heirs sued B claiming a reconveyance of the lands to them.

Held, (i) that although the facts might have constituted a ground for a Paulian action at the instance of the creditors of A, no constructive trust within the meaning of sections 82 and 83 of the Trusts Ordinance was created by the conveyance executed by A.

(ii) that, even if a constructive trust was established, the plaintiffs, as heirs of A, would have to rely on the fraud