Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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KEY TAKE AWAYS

  • Charge refers to the safety for securing the debt, by way of pledge, hypothecation and mortgage.
  • Actionable Claim may be a claim or a debt that one can take an action. In other words, there exists a claim (debt during this case) and one can approach the court for the enforcement of such a claim.
  • Mortgage implies the transfer of ownership interest during a particular immovable asset.
  • A type of interest during which a lender takes possession of private property as security for an obligation. the private property involved is additionally called a pledge.
  • A lien may be a claim or right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien. A lien serves to ensure an underlying obligation, like the repayment of a loan

CHARGE

Section 2 (b) of the Criminal Procedure Code, 19 (CrPC) states that ‘Charge’ refers to any head of charge when the charge contains quite one head.

Charge basically means informing the accused person the charge which was used as grounds to accuse him. A charge, under Section 2(b) of the Criminal Procedure Code, 1973 is that the charge that has any head of the charge when the charge contains quite one head.

  • The case of V.C Shukla v. State, 7th December 1979, Citations: 1980 AIR 962, 1980 SCR (2) 380 explains the aim of framing charge is to offer intimation to the accused, which is involved consistent with the precise language of the law, and giving clear and precise notice that's unambiguous of the character of the accusation that the accused is known as upon to satisfy within the course of an attempt.
  • In Ranchhodlal vs State Of Madhya Pradesh on 27 November, 1964 Citations: 1965 AIR 1248, 1965 SCR (2) 283, it had been held that failure to mention the particulars precisely due to the character of the knowledge may not invalidate the proceedings.

ACTIONABLE CLAIM

Actionable claim is defined in Section 3 of the Transfer of Property Act, which was included within the Act by the Amending Act II of 1990. Actionable claim is an intangible movable property, and its transfer is addressed in Chapter VIII of the Act.

Section 3 of the Act states that an actionable claim basically means:

  1. Claim to an unsecured debt
  2. Beneficial interest during a movable property

These are both claims that are recognized within the Courts of law as affording relief. There are other sorts of claims also that afford relief and are actionable within the Courts of law, like secured debts and tortuous suits like defamation or nuisance. But those aren't categorized under the meaning of actionable claim. The term actionable claim only covers the above mentioned two sorts of claims.

  • State Of Kerala & Ors vs Mini Shamsudin & Anr on 2 February, 2009,The court said that actionable claims are “goods” and movable property but it's not covered under the provisions of nuisance tax acts.
  • Jugalkishore Saraf vs Raw Cotton Co. Ltd on 7 March, 1955 Citations: 1955 AIR 376, 1955 SCR (1)1369, The Supreme Court held that a judgment debt or decree isn’t an actionable claim.Sunrise Associates v. Government of NCT of Delhi 1998 Appeal (2006), Supreme Court held that the proper to participate during a draw may be a beneficial interest in movable property. the thing of the participation would be to win the prize. Transfer of right is hence a beneficial interest in movable property not in permission. It has been held that a lottery is an actionable claim.

MORTGAGE

The transfer of the ownership of an asset by way of security for particular obligations on the express or implied condition that it'll be re-transferred on the discharge of the secured obligations.

A legal mortgage is that the most secure and comprehensive sort of interest. It transfers legal title to the Mortgagee and prevents the mortgagor from handling the mortgaged asset while it's subject to the mortgage. However, legislation has been noted to have had an affected on the characteristics of a legal mortgage over land. As a results of the Law of Property Act 1925, a legal mortgage over land is now normally created by a document creating a "charge by deed expressed to be by way of legal mortgage instead of by the mortgagor transferring the legal title to the land to the mortgagee. albeit title isn't transferred to the mortgagee (as it's with a mortgage of other assets), this sort of interest gives the mortgagee equivalent rights.

  • Smt. Savitri Devi vs Smt. Beni Devi And Ors. on 24 August, 1967 talks about an anomalous mortgage.
  • In the case ofShibnarain Mandar And Anr. vs Ramautar Singh And Ors. on 7 February, 1956 Citations: AIR 1956 Pat 312it states that only a money decree for the dues under the bond in suit could be passed in favour of the mortgagee.

PLEDGE

A Bailment or delivery of private Property to a creditor as security for a debt or for the performance of an act.

Sometimes called bailment, pledges are a sort of security to assure that an individual will repay a debt or perform an act under contract. during a pledge one person temporarily gives possession of property to a different party. Pledges are typically utilized in securing loans, pawning property for cash, and guaranteeing that contracted work are going to be done. The main three parts of every pledge are: two separate parties, a debt or obligation, and a contract of pledge. The law of pledges is sort of old, but in contemporary U.S. law it's governed in most states by the provisions for Secured Transactions in article 9 of the Uniform Commercial Code.

  • The House of Lords in case of Trustees of the Property of Ellis & Cov. Dixton Johnson (xix), held that though, he's under an obligation on payment of the debt to hand over the security, and that if, “If a creditor holding security sues for the debt.”
  • In Lallan Prasad vs Rahmat Ali & Anr on 13 December, 1966 Citations: 1967 AIR 1322, 1967 SCR (2) 233 The defendant took on Rs from the complainant on a promissory note and gave him aero scrapes worth about Rs as security for the loan. The Plaintiff sued for prepayment of the loan, but was unfit to produce the security, having vended it, and, thus his action for the loan was rejected.
  • In Central Bank Of India, Tirodi vs Abdul Mujeeb Khan And Ors. on 25 April, 1996 Citations: 1996 (0) MPLJ 1110, the bank took over the possession of the presupposed truck but later neither vended it according to the agreed terms nor took care of it, leaving it in open place, the bank was liable for the extraordinary deprecation in the value of the vehicle.

LIEN

The term lien refers to a legal claim or right which is formed against the assets that are held as collaterals for satisfying a debt. A lien is often established by a creditor or a legal judgement. the aim of the lien is to ensure an underlying obligation like the repayment of the loan. just in case the borrower fails to satisfy this underlying obligation, the lender or the creditor has the right to seize the asset that's subject of the lien. many sorts of liens are wont to secure assets.

  • in the case of Transport & General CreditCorp.v. Morgan, the right wholly depends upon the statutory vittles and not upon any indifferent considerations. The dealer is therefore not entitled to lien for any other charges i.e., charges for storehouse or the suchlike.
  • In the case of Somes v. British Empire Shipping Co. (15) that where the price has been proffered the dealer cannot claim to return the goods further for the charges incurred by him on storehouse during the period that he was holding the goods in the exercise of his lien.
BASIS CHARGE ACTIONABLE CLAIM MORTGAGE PLEDGE LIEN
Meaning Charge refers to the safety for securing the debt, by way of pledge, hypothecation and mortgage. Actionable Claim may be a claim or a debt that one can take an action. In other words, there exists a claim (debt during this case) and one can approach the court for the enforcement of such a claim. Mortgage implies the transfer of ownership interest during a particular immovable asset. A type of interest during which a lender takes possession of private property as security for an obligation. the private property involved is additionally called a pledge. Initially, the lender's possessory interest is subject to the principles of a bailment or other sort of deposit. A lien may be a claim or right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien. A lien serves to ensure an underlying obligation, like the repayment of a loan.
Creation Charge is made either by the operation of law or by the act of the parties concerned.   Mortgage is that which results the act of parties. Pledge is made by a contract between the parties. Lien is made by law or by express or implied contract
Registration When the charge is a result of the act of parties, registration is compulsory otherwise not.   Must be registered under Transfer of Property Act, 1882.    
Term Infinite   Fixed    
Personal Liability No particular liability is created, nonetheless, when it comes into effect due to a contract, then personal liability may be created.   In general, mortgage carries personal liability, except when barred by an express contract.    
Possession Charges that home buyers may need to pay, before taking possession of their property.   A pledge may be a bailment that conveys possessory title to property owned by a debtor to a creditor to secure repayment for few debt or obligation and to the mutual advantage of both parties. The term is additionally accustomed to denote the property which constitutes the security. Pledge of certain products isn’t lost by loss of possession. In the case of sale of a security by the creditor (Pledgee/pawnor), if the proceeds of such sale are less than the quantity due in respect of the debt or promise, the debtor (pawnor) remains susceptible to pay the balance. A lien is basically a possessory sort of security interest; when possession of the property is lost, the lien is released.
Rights A charge is an interest or a right which is made over an asset or a property. It is often either on immovable property like land or building or on movable property sort of a car, gold etc. If an individual has the proper to possess a movable property, then it's said that he has beneficial interest therein movable property. But if that property is not in his possession, then he has an actionable claim. 1. Right to foreclosure
2. Right of suit for sale
3. Right to sue for mortgage money
4. Right to sale without court intervention
5. Right to spend money
6. Right of possession
The pledgee (Pawnee) features a right to retain the products not just for debt or performance of the promise, all necessary expenses incurred by him in respect of the possession or for the preservation of the products pledged. Pledge also gives the creditor the proper to sell on default. The lien doesn't constitute ownership; rather, it's a kind of encumbrance. Therefore, the lien is just the proper to retain the assets, to not sell the assets unless stated within the agreement.

CONCLUSION

Like mentioned above ‘Charge’ refers to the safety for securing the debt, by way of pledge, hypothecation and mortgage. While a ‘Lien’ may be a claim or right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien. A lien serves to ensure an underlying obligation, like the repayment of a loan

On the other hand, an ‘Actionable Claim’ may be a claim or a debt that one can take an action. In other words, there exists a claim (debt during this case) and one can approach the court for the enforcement of such a claim. Whereas ‘Mortgage’ implies the transfer of ownership interest during a particular immovable asset.

And finally, a type of interest during which a lender takes possession of private property as security for an obligation. the private property involved is additionally called a ‘Pledge’.

Hence, although they may have originated from similar concepts, they are extremely different.


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