Private Law Theory

ABSTRACT
Constructive trusts, which are generally informed by the unconscionable conduct of the defendant, have significant implications on the insolvency of the defendant. This article seeks to assess whether the foundational principles of insolvency law provide any normative basis for recognising constructive trusts based on unconscionability in insolvency. This article argues that there is a strong normative justification for recognising constructive trusts in insolvency on the basis of the avoidance transaction regime in insolvency. In this context, this article further analyses the scope and extent to which the proprietary consequences of constructive trusts ought to be recognised in insolvency.

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Karan Sangani, Evaluating constructive trusts in insolvency, Trusts & Trustees. Published: 13 September 2025.