Pledge
and Mortgage can be distinguished as follows:-
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Pledge
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Mortgage
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1.
Pledge is defined under Section
172 of the Contract Act, 1872.
2.
Movable property can only be the
subject-matter of the pledge under the Contract Act.
3.
Pledge is a kind of bailment and
security.
4.
The main purpose of the pledge is
to put the goods pledged in the power of the pawnee to reimburse himself for
the money advanced by selling the goods after giving due notice to the
pawner. The pawnee at no time becomes the owner of the goods pledged. He can
only retain the goods until his claim for the money advanced thereon has been
satisfied.
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1.
Mortgage is defined under Section
58 of the Transfer of Property Act 1882.
2. Immovable property can only be
the subject-matter of the mortgage under the Transfer of Property Act.
3.
A mortgage is not so.
4. In a mortgage, an interest in the
mortgaged property is transferred in favour of the mortgagee which is subject
to the right of redemption of the mortgagor.
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Courtesy:- Legal Point
Foundation
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