Abhishek PanegalAbhishek Panegal asked 4 months ago

Sir what would be the case in case hypothecated goods value diminishes lower than that in the letter of hypothecation ?

1 Answers
RaviRavi Staff answered 4 months ago

suppose loan given is 50,00,000
value of hypothecated goods is Rs 60,00,000 on the date of loan
now if value reduces to Rs 30,00,000
then 30,00,000 will be treated as secured loan and 20,00,000 as unsecured loan
further as agreement bank can demand for collateral security 

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