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Hypothecation and Pledge

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Hypothecation deed format 2

Hypothecation of business assets with bank

Hypothecation of machinery

Hypothecation upon issue of debentures

Pledge Agreement

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List Of Documents Required

Hypothecation and Pledge

Assignment of Debt

  • Completely filled Form A with signature [Form A of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007)
  • Original Documents with one set of Xerox copies
  • Two Passport Size Photographs on both copies of documents (Seller & Purchaser)
  • Original ID Proof of the concerned Parties (with two Witnesses) like Voter card, PAN card, Passport, Driving License, Adhar Card and in case of compa nies, power of attorney/board resolution
  • e-Stamp paper with correct value of Stamp duty
  • e-Registration fee Receipt of Registration fee with undertaking / Affidavit
  • In case of agricultural land NOC is required from concemed LAC through Office
  • AADHAAR No. If Available

Recent Updates

Frequent questions, quickly answered.

The hypothecation charges means the asset is given as security against a debt. The reason for distinction is that in pledge the possession of the assets passes to the lender with the movement of the lender alongside the movement of the asset. Conversely there is no transfer of possession is there in case of hypothecation.  

Hypothecation is a practice, where a debtor pledges a collateral to secure a debt or as an edition precedent to the debt or a third party pledges collateral for debtor. A letter of hypothecation is instrument for carrying out the pledge.

Pledge is something held as security in a contract, a promise, or a person who is in a trial period before joining an organization. An example of pledge is down payment of cash on purchasing a car it is a promise made to the financer or creditor.

The subject matter of pledge is goods, goods pledged for shall be in existence, there shall be delivery of goods from pledger to pledge. There is no transfer of ownership in case of pledge.

The difference lies is that in a lien there is no power of sale or disposition of the goods, whereas, in a pledge there is power given to sale the goods on default. A lien is merely a personal right of retention of goods. Sale, on default is an incident of pledge.