Paragon Finance Plc v DB Thakerar & Co

There is a fundamental distinction between two classes of constructive trustee for limitation purposes: (i) those who, by a lawful transaction independent of and preceding any breach, have assumed the duties of a trustee (true trustees, against whom a fraud-based claim is not time-barred under s.21(1)(a) Limitation Act 1980), and (ii) those who are not trustees at all but are described as constructive trustees merely as a formula for equitable relief arising directly out of the unlawful transaction impeached -- for whom the ordinary limitation period applies.