X a trustee of Y, wrongfully disposes the property of the trust and acquired another property in his own name, partly with his own money and partly with the money received from the disposal of the trust property. What re

Under the Indian Trust Act, 1882, a beneficiary (Y) has a right to follow the trust property, even in the hands of a third person, and also when the trustee (X) has wrongfully disposed of it and acquired other property. Right to Follow Trust Property (Chapter VI of the Indian Trust Act, 1882): According to Chapter VI of the Indian Trust Act, 1882, a beneficiary has a right to follow the trust property in the hands of a third person. Even where a trustee disposes of the trust property and acquires some other property with the help of the disposal money, the beneficiary is entitled to have the latter property, the same rights or as nearly as possible the same rights, he had over the trust property. Remedy for Y: In the given problem, X, a trustee for Y, wrongfully disposed of the trust property and acquired another property in his own name, partly with his own money, partly with money subject to a trust for Y. In such a situation, Y is entitled to a charge on the newly acquired property for the amount of the trust money so misemployed. This means Y can claim a lien or security interest on the new property to recover the trust money that was used to acquire it.