https://www.taxtmi.com/caselaws?id=239316 A duly created and registered hypothecation can give a financial corporation constructive possession and enforceable security rights over the goods, even where the borrower retains actual possession as its agent. When Section 29 of the State Financial Corporations Act, 1951 is invoked before winding up matures into a winding up order, the secured creditor may take over and sell the hypothecated property, and a private sale arrangement with the borrower will not bind the corporation without its consent or prior clearance. Payments made under such an arrangement do not by themselves create title or priority, and any claim for refund or loss of profit remains only an unsecured claim against the company. en-us Wed, 08 May 2013 00:00:00 +0530 Mon, 11 Nov 2013 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=239316 A duly created and registered hypothecation can give a financial corporation constructive possession and enforceable security rights over the goods, even where the borrower retains actual possession as its agent. When Section 29 of the State Financial Corporations Act, 1951 is invoked before winding up matures into a winding up order, the secured creditor may take over and sell the hypothecated property, and a private sale arrangement with the borrower will not bind the corporation without its consent or prior clearance. Payments made under such an arrangement do not by themselves create title or priority, and any claim for refund or loss of profit remains only an unsecured claim against the company. Case-Laws Companies Law Wed, 08 May 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=239316