law: Indian Trusts Act, 1882 
  23. Liability for breach of trust 
  Where the trustee commits a breach of trust, he is liable to
  
  make good the loss which the trust-property or the beneficiary has thereby
  
  sustained, unless the beneficiary has by fraud induced the trustee to commit
  
  the breach, or the beneficiary, being competent to contract, has himself, without
  
  coercion or undue influence having been brought to bear on him, concurred in
  
  the breach, or subsequently acquiesced therein, with full knowledge of the
  
  facts of the case and of his rights as against the trustee.
  A trustee committing a breach of trust is not liable to pay
  
  interest except in the following cases :- 
  (a) where he has actually received interest;
  (b) where the breach consists in unreasonable
  
  delay in paying trust-money to the beneficiary;
  (c) where the trustee ought to have received
  
  interest, but has not done so;
  (d) where he may be fairly presumed to have
  
  received interest.
  He is liable, in case (a), to account for the
  
  interest actually received, and, in case (b), (c) and (d), to account for
  
  simple interest at the rate of six per cent per annum, unless the court
  
  otherwise directs;
  (e) where the breach consists in failure to
  
  invest trust-money and to accumulate the interest or dividends thereon, he is
  
  liable to account for compound interest (with half-yearly rests) at the same
  
  rate;
  (f) where the breach consists in the
  
  employment of trust-property or the proceeds thereof in trade or business he is
  
  liable to account, at the option of the beneficiary, either for compound
  
  interest (with half-yearly rests) at the same rate, or for the net profits made
  
  by such employment.
  Illustrations 
  (a) A trustee improperly leaves trust-property outstanding, and
  
  it is consequently lost; he is liable to make good the property lost, but he is
  
  not liable to pay interest thereon.
  (b) A bequeaths a house to B in trust to sell it and pay the
  
  proceeds to C. B neglects to sell the house for a great length of time, whereby
  
  the house is deteriorated and its market price falls. B is answerable to C for
  
  the loss.
  (c) A trustee is guilty of unreasonable delay in investing trust
  
  money in accordance with section 20, or in paying it to the beneficiary. The
  
  trustee is liable to pay interest thereon for the period of the delay.
  (d) The duty of the trustee is to invest trust-money in any of
  
  the securities mentioned in section 20, clauses (a), (b), (c) or (d). Instead
  
  of so doing, he retains the money in his hands. He is liable, at the option of
  
  the beneficiary, to be charged either with the amount of the principal money
  
  and interest, or with the amount of such securities as he might have purchased
  
  with the trust-money when the investment should have been made, and the
  
  intermediate dividends and interest thereon.
  (e) The instrument of trust directs the trustee to invest
  
  trust-money either in any of such securities or on mortgage of immovable
  
  property. The trustee does neither. He is liable for the principal money and
  
  interest.
  (f) The instrument of trust directs the trustee to invest
  
  trust-money in any of such securities and to accumulate the dividends thereon.
  
  The trustee disregards the direction. He is liable, at the option of the
  
  beneficiary, to be charged either with the amount of the principal money and
  
  compound interest, or with the amount of such securities as he might have
  
  purchased with the trust-money when the investment should have been made,
  
  together with the amount of the accumulation which would have arisen from a
  
  proper investment of the intermediate dividends.
  (g) Trust-property is invested in one of the securities
  
  mentioned in section 20, clauses (a), (b), (c) or (d). The trustee sells such
  
  security for some purpose not authorized by the terms of the instrument of
  
  trust. He is liable, at the option of the beneficiary, either to replace the
  
  security with the intermediate dividends and interest thereon, or to account
  
  for the proceeds of the sale with interest thereon.
  (h) The trust-property consists of land. The trustee sells the
  
  land to a purchaser for a consideration without notice of the trust. The
  
  trustee is liable, at the option of the beneficiary, to purchase other land of
  
  equal value to be settled upon the like trust, or to be charged with the
  
  proceeds of the said with interest.