Hypotecation of vehicle loan

[pavani akilla]

Dear All,

 

Whether hypothecation of vehicle loan shall be registered with the ROC or not.

 

Ramaiaih book says that "hypothecation is a pledge and is exempted from registration

 

Pls provide me the case laws if any.."

 

 

 

PAVANI

[CS.Manpreet Singh]

Dear

 

I think hypothecation is not a pledge. The intention of the law to exclude pledge from registration with ROC is that the creditor/lender is on safe side as in pledge the possession of the property transfers to the lender but its not the same in hypothecation. In hypothecation, possession remains with the borrower and to secure it, registration is essential. though in common practice also Bank force to create charge on hypothecation.

 

other views are solicited.

thanks

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[chakri hegde]

Yes I do agree with Manpreet......

If the Hypothecation is in the nature of Pledge, then there is no need to register the same with ROC. 

On Fri, Jan 29, 2010 at 3:00 PM, pavani akilla <pavani...@gmail.com> wrote:

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With Best Wishes
Chakri G Hegde
Nissin Foods India Ltd.
Bangalore

[Rakesh Jain]

Please see Ideal Bank Limited case law (attached for your ready reference). Ramaiya observations are based on the facts of the case. Please see the special facts. This case relates to the period even before commencement of Companies Act, 1956.

This observation is not applicable generally.  

 

Thanks & regards.

Rakesh Jain

09810060524

 

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[harshavardhan boratti]

Dear All,

 

The important point to be observed is whether the bank has the title to sell the property in case of default. Generally in case of vechical loan the RC Book contains the details of the Hypothecation. Hence the Registration of Charges in such cases are permissible and not compulsory.

 

Regards,

Harshavardhan R.B.

[n garg]

Dear this is not an obligation on the company to file the charge with ROC. The main thing is depend whether the bank is interested to file with ROC or not because ultimately he is the benificiary. If the bank is not insisting for the same then there is no need. On the other hand is the bank is asking to us for file with the ROC and we are not filling then in that case we are liable to procecute otherwise the main thing is only upon the bank to file or not.

 

thanks

On Fri, Jan 29, 2010 at 3:00 PM, pavani akilla <pavani...@gmail.com> wrote:

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