TaxTMI 
TaxTMI 
1942 (4) TMI 23
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....promissory note, the maker deposited with, him as security for payment a. share certificate in respect of shares held by him in the Parli Tile Works, Limited. The certificate was not accompanied by a deed transferring the shares to the appellant, but he claims that notwithstanding this there was a valid pledge of the shares. The suit was contested by the fourth defendant, who is the first respondent in this appeal. On a date subsequent to the deposit of the share certificate with the appellant the first respondent attached the shares by a prohibitory order issued under Order 21, Rule 46 of the Code of Civil Procedure. He denied that a valid pledge of the shares was created in favour of the appellant and maintained that he himself had obtain....
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....erty as being on the same basis as an equitable mortgage of immovable property and therefore an equitable mortgage of movable property could not be effected outside the towns specified in the Transfer of Property Act. It is not necessary for the Court to discuss this question because Mr. Kuttikrishna Menon, on behalf of the appellant, has been content to confine his case to the plea of pledge. 4. Now let us see what is implied by the expression 'pledge'. In Hallday v. Holgate (1868) L.R. 3 Exeh. Cas 299, Willes, J., placed a pledge between a simple lien and a mortgage. He pointed out that in the case of a lien there is no transfer of interest, but in the case of a mortgage the property passes. In the case of a pledge a deposit of....
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....efore the passing of the Sale of Goods Act, 1930, sales of goods were regulated by the sections comprised in Chapter VII of the Contract Act, but the Sale of Goods Act repealed the whole of the chapter. Section 72 (one of the repealed sections) defined 'goods' as meaning every kind of movable property; and as shares are movable property, they were goods within the meaning of that section. 6. When the Sale of Goods Act was placed on the statute book Section 178 of the Contract Act was amended. Before the amendment the section read as follows: A person who is in possession of any goods, or of any bill of lading, dock-warrant, warehouse-keeper's certificate, wharfinger's certificate, or warrant or order....
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....ven before the enactment of the Sale of Goods Act and, therefore, before the amendment of the Contract Act. On the other hand, the Bombay High Court, long before 1930, held that the term 'goods' used in Section 178 of the Contract Act includes shares in joint stock companies and consequently recognised that there could be a valid pledge of shares. See B. D. Sethna v. National Bank (1910)12BOMLR870 , Fazal v. Mangaldas (1921) 46 Bom. 489 and Jamshedji v. Maganlal (1925)27BOMLR514 . It seems to us that even before the passing of the Sale of Goods Act the Bombay opinion was preferable to the Calcutta opinion, but as the result of the passing of the Sale of Goods Act and the amendment of the Contract Act we consider that the Bombay opin....