https://www.taxtmi.com/caselaws?id=101710 A composite mortgage transaction was treated as severable: the Rs. 12,000 retained and adjusted towards purchase of the lender-company's shares was unlawful as financial assistance for acquisition of its own shares, while the remaining Rs. 18,000 was valid and had been repaid. Applying the Contract Act alongside the Transfer of Property Act, the analysis stated that section 24 of the Contract Act does not govern a completed transfer of property in the same manner as a mere contract. Because the invalid consideration was separable from the valid part, the mortgage was not void in its entirety, but the unenforceable portion could not be recovered. The dismissal of the suit was affirmed. en-us Fri, 17 Oct 1986 00:00:00 +0530 Fri, 10 Feb 2012 17:40:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101710 A composite mortgage transaction was treated as severable: the Rs. 12,000 retained and adjusted towards purchase of the lender-company's shares was unlawful as financial assistance for acquisition of its own shares, while the remaining Rs. 18,000 was valid and had been repaid. Applying the Contract Act alongside the Transfer of Property Act, the analysis stated that section 24 of the Contract Act does not govern a completed transfer of property in the same manner as a mere contract. Because the invalid consideration was separable from the valid part, the mortgage was not void in its entirety, but the unenforceable portion could not be recovered. The dismissal of the suit was affirmed. Case-Laws Companies Law Fri, 17 Oct 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101710