https://www.taxtmi.com/caselaws?id=200286 A pledge of shares or units does not transfer ownership to the pledgee, so a purchaser from the pledgee cannot acquire better title than the pledgee possessed and the true owner's claim is not defeated. The proviso to Section 27 of the Sale of Goods Act applies only where goods are held by a mercantile agent with authority to sell in the ordinary course of business; mere possession by a pledgee with blank transfer forms is insufficient. The pledgor retains the right to redeem the pledged units until actual sale and remains liable to pay interest on the secured debt. en-us Mon, 16 Aug 1993 00:00:00 +0530 Sat, 24 Mar 2018 17:12:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200286 A pledge of shares or units does not transfer ownership to the pledgee, so a purchaser from the pledgee cannot acquire better title than the pledgee possessed and the true owner's claim is not defeated. The proviso to Section 27 of the Sale of Goods Act applies only where goods are held by a mercantile agent with authority to sell in the ordinary course of business; mere possession by a pledgee with blank transfer forms is insufficient. The pledgor retains the right to redeem the pledged units until actual sale and remains liable to pay interest on the secured debt. Case-Laws Companies Law Mon, 16 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200286