Pledge - Indian Laws - General

Pledge As per Black s Law Dictionary (Eighth edition), pledge is a formal promise or undertaking; the act of providing something as security for a debt or obligation; a bailment or other deposit of personal property to a creditor as security for debt or obligation. In the Law of Personal Property by Ray Andrews Brown (Second edition 1936), the term pledge has been described in the following words: A pledge is a bailment of personal property to secure an obligation of the bailor. If the purpose of the transaction is to transfer property for security only, then the Courts will hold the transaction a pledge, even though in form it may be a sale or other out-and-out transfer. In Mulla s Treaties on the Transfer of Property , the following description has been given to the term pledge : A pledge is a bailment of movable property by way of security. Possession is given and the transaction involves a transfer of special property in the subject of the security. A Pawnee has no right of foreclosure since he never had absolute ownership at law and his equitable title cannot exceed what is specifically granted by law . In a pledge the pledge is in possession of and has a special property in the goods which he is entitled to detain to secure repayment. MAHARASHTRA STATE CO-OPERATIVE BANK LTD VERSUS ASSISTANT PROVIDENTFUND COMMISSIONER AND ORS - 2009 (10) TMI 825 - SUPREME COURT