https://www.taxtmi.com/caselaws?id=801144 Priority between competing claims to shares turns on whether proprietary security was actually created. A non-disposal arrangement, personal guarantee, or unspecified negative lien creates only contractual or personal obligations unless it clearly identifies property and establishes an enforceable charge. A later pledge of identified shares, supported by delivery, creates the pawnee's special proprietary interest under the Contract Act and takes priority over such unsecured claims. A subsequent lending facility that discharges earlier lending and pledge arrangements is distinct rather than an assignment of prior security. An unrecorded oral undertaking does not extinguish the later pledge, and one co-owner's guarantee cannot charge jointly held shares without the other co-owner's consent. Asset restoration exceeding the loan claim removes an equitable basis for further claims. en-us Wed, 14 Oct 2026 00:00:00 +0530 Fri, 16 Oct 2026 05:20:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801144 Priority between competing claims to shares turns on whether proprietary security was actually created. A non-disposal arrangement, personal guarantee, or unspecified negative lien creates only contractual or personal obligations unless it clearly identifies property and establishes an enforceable charge. A later pledge of identified shares, supported by delivery, creates the pawnee's special proprietary interest under the Contract Act and takes priority over such unsecured claims. A subsequent lending facility that discharges earlier lending and pledge arrangements is distinct rather than an assignment of prior security. An unrecorded oral undertaking does not extinguish the later pledge, and one co-owner's guarantee cannot charge jointly held shares without the other co-owner's consent. Asset restoration exceeding the loan claim removes an equitable basis for further claims. Case-Laws Companies Law Wed, 14 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801144