https://www.taxtmi.com/caselaws?id=96881 Promissory notes endorsed and delivered to secure repayment may constitute a pledge where the holder may realise the notes and must re-transfer them upon payment of the secured balance. As movable goods, promissory notes can be subject to bailment for security under the Contract Act. Endorsement alone does not convert the arrangement into a mortgage, particularly where the companies law provision expressly distinguishes mortgages that are pledges from registrable mortgages. A possession-based security arrangement with the essential incidents of bailment is therefore not void for lack of registration. en-us Thu, 05 Feb 1942 00:00:00 +0630 Wed, 11 Jan 2012 17:57:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96881 Promissory notes endorsed and delivered to secure repayment may constitute a pledge where the holder may realise the notes and must re-transfer them upon payment of the secured balance. As movable goods, promissory notes can be subject to bailment for security under the Contract Act. Endorsement alone does not convert the arrangement into a mortgage, particularly where the companies law provision expressly distinguishes mortgages that are pledges from registrable mortgages. A possession-based security arrangement with the essential incidents of bailment is therefore not void for lack of registration. Case-Laws Companies Law Thu, 05 Feb 1942 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=96881