Pledge of Shares: Registration as Beneficial Owner Isn't Sale; Rights u/s 176 of Contract Act Intact.

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Full Text of the Document

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....Pledge of shares - Pawnor and the pawnee’s right to sue for recovery and sell the pawned goods - As to be held that registration of the pawn, that is the dematerialised shares, in favour of PIFSL as the ‘beneficial owner’ does not have the effect of sale of shares by the pawnee. The pledge has not been discharged or satisfied either in full or in part. PIFSL is not required to account for any sale proceeds which are to be applied to the debt on the ‘actual sale’. The two options available to PIFSL as the pawnee under Section 176 of the Contract Act remain and are not exhausted. - SC....