Pankhania v Chandegra

The express declaration of trust in the transfer is conclusive and cannot be displaced by evidence of contrary intention or imposition of a constructive trust unless fraud, mistake, undue influence, or proprietary estoppel is established, none of which were present. The sham principle does not apply as there was no intention to deceive third parties.

Parties: Appellant/claimant: Nilesh Hirji Pankhania; Respondent/defendant: Mrs Kalavanti Narendra Chandegra
Jurisdiction: England and Wales
Judgment Date: 09 November 2012
Procedural Posture: Civil Appeal / Judgment on Appeal
Outcome: appeal allowed
Legal Topics: Express Declaration of Trust, Constructive Trust, Beneficial Ownership, Rectification, Sham Trust

Property Law Trusts Express Declaration of Trust Constructive Trust Beneficial Ownership Rectification Sham Trust

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Parties

Nilesh Hirji Pankhania

Appellant/claimant

Mrs Kalavanti Narendra Chandegra

Respondent/defendant

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

1 Whether an express declaration of trust can be displaced by evidence of contrary intention
2 Whether the declaration of trust was a sham
3 Whether a constructive trust could be imposed despite the express declaration

Ratio Decidendi

Court Disposition

appeal allowed

Orders

Order for sale of the property at 7, Cossington Street, Leicester
Declaration that the parties are entitled to the net proceeds of sale in equal shares