https://www.taxtmi.com/caselaws?id=442741 A pledge of dematerialised shares may, consistently with Section 176 of the Indian Contract Act and the depository framework, include additional contractual incidents such as voting rights and limited ownership-like powers, so long as mandatory statutory requirements are not violated. The Court also treated assignment of the pledged shares under the SARFAESI regime as lawful and effective, holding that the assignee stepped into the bank's shoes and could enforce the security as pledgee. Allegations of fraud were held not to establish a prima facie case of voidness; at most they suggested voidability, which had not been properly avoided. Interim restraint on voting, transfer and participation in management was therefore refused. en-us Mon, 04 Sep 2023 00:00:00 +0530 Fri, 08 Sep 2023 22:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=442741 A pledge of dematerialised shares may, consistently with Section 176 of the Indian Contract Act and the depository framework, include additional contractual incidents such as voting rights and limited ownership-like powers, so long as mandatory statutory requirements are not violated. The Court also treated assignment of the pledged shares under the SARFAESI regime as lawful and effective, holding that the assignee stepped into the bank's shoes and could enforce the security as pledgee. Allegations of fraud were held not to establish a prima facie case of voidness; at most they suggested voidability, which had not been properly avoided. Interim restraint on voting, transfer and participation in management was therefore refused. Case-Laws Companies Law Mon, 04 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=442741