https://www.taxtmi.com/caselaws?id=302300 Section 17 of the Displaced Persons (Debts Adjustment) Act, 1951 was treated as extending beyond formal pledge where the creditor had not taken physical possession, because the Explanation covers cases where pledged property is held by the debtor on the creditor's behalf and cannot be transferred without consent. The text applies that reasoning to hypothecation, noting that although possession remains with the debtor, the goods are subject to the creditor's security interest and cannot be freely dealt with. On that basis, hypothecated goods in the debtor's possession fell within the deeming provision, and the bank's claim was restricted accordingly. en-us Mon, 23 Mar 1959 00:00:00 +0530 Sat, 14 May 2022 10:16:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302300 Section 17 of the Displaced Persons (Debts Adjustment) Act, 1951 was treated as extending beyond formal pledge where the creditor had not taken physical possession, because the Explanation covers cases where pledged property is held by the debtor on the creditor's behalf and cannot be transferred without consent. The text applies that reasoning to hypothecation, noting that although possession remains with the debtor, the goods are subject to the creditor's security interest and cannot be freely dealt with. On that basis, hypothecated goods in the debtor's possession fell within the deeming provision, and the bank's claim was restricted accordingly. Case-Laws Indian Laws Mon, 23 Mar 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302300