ABSTRACT
Any person who interferes with the operation of the trust or who assists the trustee in a breach of his trust duties may find himself fixed with a constructive trust and answerable to the court and the beneficiaries for any misapplication of the trust property. Yet in appropriate cases, when the conditions established by the case law are fulfilled, the constructive trust swings into operation and provides a most powerful remedy. Millett L J in Paragon Finance v Thakerar opined that the liability of an accessory is strictly not as a constructive trustee because he does not acquire the trust property. His liability is to account to the beneficiaries for any benefits received. This is a personal liability to account rather than an in rem liability. Equity imposes a constructive trust on a stranger who has received trust property for his own benefit in breach of the terms of the trust.
