Pledge of shares does not carry dividends, bonus shares or rights issues absent contrary contract.

A pledge of shares, absent a contract to the contrary, does not transfer general property in the shares to the pawnee; the pawnee has only a special property and a right to retain and, on default, to sell after notice. As the pledged shares were not sold and no agreement excluded the pawner's rights, accretions arising from the shares remained with the pawner. The pledge therefore did not extend to accrued dividends or to bonus and right shares, and the pawner was held entitled to those accretions.

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Issues: Whether, in the absence of any contract to the contrary, a pledge of shares carries with it the right to dividends, bonus shares and right shares subsequently issued in respect of the pledged shares.

Analysis: A pledge is only a bailment of goods as security for payment of a debt. The pawnee acquires only a special property, namely the right of retainer and, on default, the right to sell after notice, while the general property remains with the pawner. By contrast, a sale transfers general property. Since the pledged shares were not sold and no contract excluded the pawner's rights, any accretion arising from the shares continued to belong to the pawner.

Conclusion: The pledge did not extend to the accrued dividends or to the bonus and right shares. The appellant was entitled to those accretions, and the impugned decree was modified accordingly.

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