JUDGMENT :

Sanjiv Khanna, J.

The primary legal issue which arises for consideration in this appeal is whether the DEPOSITORIES ACT , 1996 read with the Regulation 58 of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996¹[For short, 1996 Regulations'] has the legal effect of overwriting the provisions relating to the contracts of pledge under the Indian CONTRACT ACT , 1872²[For short, ' CONTRACT ACT '.] and the common law as applicable in India. To facilitate analysis, this judgment has been divided into sections as follows:

A. Factual background of the case

B. Relevant provisions of the CONTRACT ACT

C. Analysis of case laws under the CONTRACT ACT :

(i) What is pledge and the legal difference between ownership, pledge and mortgage

(ii) Pawnee has a special and not general right in the pledged property

(iii) Accretion on pawned goods

(iv) Notice of sale by pawnor and his right to sale

(v) Sale of the pledged goods by the pawnee to self

D. Effect and Purpose of the DEPOSITORIES ACT , 1996 and the Securities and Exchange Board of India (Depositories and Participants) Regulation 1996

E. Effect of the DEPOSITORIES ACT , 1996 and the Securities and Excha