https://www.taxtmi.com/caselaws?id=98604 A company mortgage created by memorandum and deposit of title deeds was treated as an operative instrument creating a charge, so it fell within Rule 94A of the Defence of India Rules and required Central Government consent; absent consent, the transaction was prohibited. Because the mortgage was unlawful, the lender could not enforce the security or recover the consideration advanced. The mortgage was also registrable under Section 109 of the Indian Companies Act, 1913, and non-registration meant it was void against the liquidator and creditors. The governing principle is that a company mortgage may be caught by a rule controlling charges, and an illegal security transaction is unenforceable. en-us Thu, 13 Jun 1968 00:00:00 +0530 Sat, 21 Jan 2012 12:48:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98604 A company mortgage created by memorandum and deposit of title deeds was treated as an operative instrument creating a charge, so it fell within Rule 94A of the Defence of India Rules and required Central Government consent; absent consent, the transaction was prohibited. Because the mortgage was unlawful, the lender could not enforce the security or recover the consideration advanced. The mortgage was also registrable under Section 109 of the Indian Companies Act, 1913, and non-registration meant it was void against the liquidator and creditors. The governing principle is that a company mortgage may be caught by a rule controlling charges, and an illegal security transaction is unenforceable. Case-Laws Companies Law Thu, 13 Jun 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98604