https://www.taxtmi.com/caselaws?id=460023 A mortgage or charge over company assets cannot be inferred without a clear intention to create security, and an alleged charge must also be created and registered in the prescribed manner to be enforceable. Here, the agreement and registered charge documents did not show that the immovable properties or plants and machinery were covered, so no enforceable security interest arose. The secured creditor was therefore excluded from participating pari passu in the proceeds realised by the Official Liquidator, and the liquidation fund was to be distributed according to the categories already identified. en-us Wed, 18 Sep 2013 00:00:00 +0530 Wed, 08 Jan 2025 17:15:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460023 A mortgage or charge over company assets cannot be inferred without a clear intention to create security, and an alleged charge must also be created and registered in the prescribed manner to be enforceable. Here, the agreement and registered charge documents did not show that the immovable properties or plants and machinery were covered, so no enforceable security interest arose. The secured creditor was therefore excluded from participating pari passu in the proceeds realised by the Official Liquidator, and the liquidation fund was to be distributed according to the categories already identified. Case-Laws Companies Law Wed, 18 Sep 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460023