Kaagazaat

Hypothecation Agreement (General Movable Assets)

At a glance

Price: ₹399 · GST included
Stamp duty: PUNJAB: hypothecation without transfer of possession is a distinct entry — Entry 6, Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab, at 0.25% of the amount secured, as notified in 2024. … CHANDIGARH: the Chandigarh Administration's Rates of Stamp Duty & Registration Fees table at revenue.chd.gov.in does not publish a distinct rate for a hypothecation agreement as such.
Registration: This Agreement is not by itself a conveyance requiring registration under s.17 of the Registration Act, 1908, hypothecation being a charge rather than a transfer of ownership or possession.
Witnesses: Not legally required.

₹399

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Also called

Hypothecation Deed
Chal Sampatti Girvi Karar
ਚੱਲ ਜਾਇਦਾਦ ਗਿਰਵੀ ਸਮਝੌਤਾ
चल संपत्ति बंधक करार
Agreement of Hypothecation
Hypothecation of Stock and Vehicles
Movable Asset Security Agreement

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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Why you need it

When you need it

Security is being given over movable business assets that stay in the borrower's own possession and use — a vehicle, plant and machinery not permanently fixed to a building, stock-in-trade and raw materials, goods and merchandise, or book debts and receivables — while a loan or credit facility is outstanding. Hypothecation is the arrangement that lets the borrower keep using the asset while the lender holds a charge over it, unlike a pledge, where the lender takes actual or constructive possession, and unlike a mortgage, which is for immovable property. That is also its risk: the lender's security exists only on paper and on the asset actually being where the schedule says it is, so the description of the assets and the borrower's undertakings about keeping them insured, unencumbered and traceable carry the whole value of the document. For business or personal movable assets other than fixtures and equipment already fixed at rented or owned premises — for those, use the Hypothecation Agreement for Fixtures and Equipment instead. Not for stock or goods a lender actually takes into its own godown or custody, which is a pledge and needs a different document; not for immovable property, which needs a mortgage; and not by itself sufficient where the lender is a bank or other institution that also wants a Companies Act charge or a CERSAI filing — this Agreement records the security, and those filings are separate steps this Agreement identifies but does not itself complete.

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

PUNJAB: hypothecation without transfer of possession is a distinct entry — Entry 6, Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab, at 0.25% of the amount secured, as notified in 2024. Confirm the figure currently in force with the Sub-Registrar or against the Department of Revenue, Rehabilitation and Disaster Management's published table at revenue.punjab.gov.in before the stamp is bought, and e-stamp through the Stock Holding Corporation of India Limited (SHCIL). CHANDIGARH: the Chandigarh Administration's Rates of Stamp Duty & Registration Fees table at revenue.chd.gov.in does not publish a distinct rate for a hypothecation agreement as such. Ask the Sub-Registrar, 30 Bays Building for the rate to apply, or apply for adjudication of the proper duty under s.31 of the Indian Stamp Act, 1899 before execution, so the instrument is not left exposed to impounding later. BOTH: an instrument that is unstamped or insufficiently stamped is inadmissible in evidence under s.35 of the Indian Stamp Act, 1899 until the deficiency and any penalty are paid — which for a security document means the Lender cannot rely on it in the one situation it exists for.

Registration

This Agreement is not by itself a conveyance requiring registration under s.17 of the Registration Act, 1908, hypothecation being a charge rather than a transfer of ownership or possession. Two further steps are separate from registration under that Act and from each other. Where the Borrower is a company, s.77 of the Companies Act, 2013 requires the charge to be registered with the Registrar of Companies within thirty days of its creation, failing which the charge is void against the liquidator and any creditor of the company, though the underlying debt remains recoverable from the Borrower personally. Separately, filing particulars of the security interest with the Central Registry under the SARFAESI Act, 2002 (CERSAI) is open to a secured creditor within the meaning of that Act and is commonly done for a bank or notified financial institution's own priority, but is not compulsory for the hypothecation to bind the Borrower as between the Parties.

Notarisation

Not legally required for a hypothecation agreement. Notarisation is sometimes done in addition, chiefly to fix the date of execution and the date of the assets schedule beyond dispute; it does not substitute for the Companies Act or CERSAI filings described above where those apply.

Witnesses

Not legally required. Two witnesses are recommended given how much of this Agreement's value depends on later being able to show exactly what was agreed and when, particularly the assets schedule.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

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HYPOTHECATION AGREEMENT

This Hypothecation Agreement (this "Agreement") is made at Patiala on 1 April 2026.

BETWEEN

Gurpreet Singh Dhillon, an individual, of House No. 512, Urban Estate, Phase II, Patiala 147002, PAN AFRPB2211J (the "Borrower");

AND

Punjab Mercantile Co-operative Bank Limited, of SCO 44-45, Sector 8-C, Chandigarh 160009 (the "Lender"), the Lender is a bank or other financial institution notified as a secured creditor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002).

The Borrower and the Lender are each a "Party" and together the "Parties".

RECITALS

A. A cash credit facility of Rs 15,00,000 sanctioned by the Lender to the Borrower vide sanction letter dated 2 August 2026, for working capital.

B. As security for repayment of the amount described in Recital A, the Borrower has agreed to hypothecate to the Lender the movable assets described in Schedule I, without parting with their possession.

NOW THIS AGREEMENT WITNESSES as follows.

HYPOTHECATION

1.1 The Borrower hereby hypothecates to the Lender, by way of first charge, the movable assets described in Schedule I (the "Hypothecated Assets") as continuing security for the due repayment of ₹15,00,000 (Rupees Fifteen Lakh only) and all interest, costs and other sums payable under the facility described in Recital A.

1.2 This hypothecation is a charge only. It does not transfer ownership of, or possession in, the Hypothecated Assets to the Lender, and the Borrower continues to hold and use them subject to the terms of this Agreement. Nothing in this Agreement constitutes a pledge, and no possession of the Hypothecated Assets passes to the Lender at any time before enforcement under clause 8.

THE HYPOTHECATED ASSETS

2.1 The Hypothecated Assets are described in Schedule I and are ordinarily kept at Shop No. 14, Grain Market, Patiala 147001. The Borrower shall not remove them from that location otherwise than as clause 4 permits.

2.2 The Borrower warrants that it is the absolute owner of the Hypothecated Assets, that they are free of any prior charge, lien or encumbrance except as disclosed to the Lender in writing before this Agreement, and that it has full power to hypothecate them as provided in this Agreement.

COMPANIES ACT CHARGE REGISTRATION

3.1 The Borrower is a company within the meaning of the Companies Act, 2013, and shall procure registration of the charge created by this Agreement with the Registrar of Companies under s.77 of that Act within thirty days of its creation, failing which the charge shall, so far as any security on the Borrower’s property is thereby conferred, be void against the liquidator and any creditor of the Borrower

Questions about this document

Does the Hypothecation Agreement (General Movable Assets) need stamp paper or stamp duty in Punjab and Chandigarh?

CHANDIGARH: the Chandigarh Administration's Rates of Stamp Duty & Registration Fees table at revenue.chd.gov.in does not publish a distinct rate for a hypothecation agreement as such. Ask the Sub-Registrar, 30 Bays Building for the rate to apply, or apply for adjudication of the proper duty under s.31 of the Indian Stamp Act, 1899 before execution, so the instrument is not left exposed to impounding later.

BOTH: an instrument that is unstamped or insufficiently stamped is inadmissible in evidence under s.35 of the Indian Stamp Act, 1899 until the deficiency and any penalty are paid — which for a security document means the Lender cannot rely on it in the one situation it exists for.

Does the Hypothecation Agreement (General Movable Assets) need registration in Punjab and Chandigarh?

What does the Hypothecation Agreement (General Movable Assets) cost on Kaagazaat?

₹399, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

Does the Hypothecation Agreement (General Movable Assets) need witnesses?

Not legally required. Two witnesses are recommended given how much of this Agreement's value depends on later being able to show exactly what was agreed and when, particularly the assets schedule.

Often needed with this document

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