DEED OF HYPOTHECATION (CHARGE)

DEED OF HYPOTHECATION (CHARGE)

THIS HYPOTHECATION is made the _________ day of _________, in the year 20 _________

BETWEEN

…………………………………………………….. Mills Ltd.

a limited liability company having it registered office at ____________________ and its factory _________ at _________

(hereinafter called ‘the Mills’) of the one part

AND the ______________________________ Bank having its registered office at ________________ and several branches including the one at_________________ _________ (hereinafter called ‘the Bank’) of the other part.

WHEREAS the Bank at the request of the Mills has agreed to grant to them accommodation through the medium of a Cash-Credit Account under a drawing limit of Rupees _________(Rs _________________________________) only to be secured in the manner hereinafter expressed.

NOW THEREFORE IT IS HEREBY AGREED AND DECLARED as follows:

1. That the Mills hereby charges and hypothecates by way of first charge in favour of the Bank all present and future movable plants, engines, machinery, apparatus, tools, motor trucks, lorries and cars, furniture, stocks of _____________________ and other stocks and goods of the Mills, whether in possession or in transit or in process of manufacture (hereinafter referred to as ‘‘the said property’’) for the purposes and upon the terms hereinafter declared.

2. That the said property shall stand hypothecated and charged to the Bank by way of first charge as security for the payment to the Bank on demand of the balance of the said Cash-Credit Account and/or any other account of the Mills with the Bank at the aforesaid Branch of the Bank at. _________ with all interests, discount, commission, charges, costs, etc. usually, customarily or expressly contracted to be debited to the said account or accounts by the Bank in relation to any such indebtedness or liability.

3. That unless otherwise expressly agreed interest at the rate of one per cent per annum above the Reserve Bank of India rate for demand loans obtaining from time to time with a minimum rate of _________ per cent per annum shall be calculated on the daily balances payable by the Mills to the Bank on the said account or accounts on the last working day of each English month or otherwise in accordance with the practice of the Bank and although the relation of Banker and Customer may have ceased, the same shall thenceforth carry interest at the rate aforesaid.

4. That the Bank may at any time at its option and without assigning any reason close the said Cash-Credit Account and stop all future advances and demand payment of the balance then due.

5. That on demand being made by the Bank

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DEED OF HYPOTHECATION (CHARGE) Format

Need a reliable DEED OF HYPOTHECATION (CHARGE) for Indian use? Download this customisable legal template on Contract Easily in PDF or Word, fill in parties, dates and particulars, and execute with the attestation or stamp formalities that apply in your State.

What is a DEED OF HYPOTHECATION (CHARGE)?

A DEED OF HYPOTHECATION (CHARGE) is a ready-to-use deed / property instrument under the Banking collection. It sets out the roles of the parties, the subject matter, and the operative terms you must complete before signing. In India such drafts are generally read with the Indian Contract Act, 1872 and any subject-specific statute that fits the document (for example CPC/BNSS for pleadings, Transfer of Property / Registration practice for deeds, or stamp/notary rules for affidavits)—customise only what truly applies to your facts.

From the operative draft, this template typically covers points such as: “WHEREAS the Bank at the request of the Mills has agreed to grant to them accommodation through the medium of a Cash-Credit Account under a drawing limit of Rupe…” “NOW THEREFORE IT IS HEREBY AGREED AND DECLARED as follows: 1.”

Why is a DEED OF HYPOTHECATION (CHARGE) Important?

Clarity of parties and purpose: Reduces disputes over who is bound and what was agreed.
Structured blanks: Forces completion of names, dates, amounts, schedules and annexures.
Risk allocation: Keeps operative clauses (consideration, duties, default, termination) visible before signing.
Evidence value: A filled, signed template is far stronger than informal chats or unsigned drafts.
Process readiness: Helps you prepare for notary, registration, filing or commercial execution as applicable.
Faster turnaround: Starts from a tested skeleton instead of a blank page.

Key Elements of the DEED OF HYPOTHECATION (CHARGE) Format

Title and parties: Full legal names and addresses of every side.
Recitals / background: Short context of why the document is being made.
Operative clauses: The binding promises, rights and duties.
Consideration / fees / amounts: Money, services or other exchange, if any.
Schedules and annexures: Property, equipment, claims or particulars lists.
Duration, renewal and termination: How long it runs and how it ends.
Default and remedies: What happens on breach.
Governing law / dispute route: Indian law and forum/arbitration as drafted.
Execution block: Signatures, witnesses, date and place.
Stamp / attestation notes: Complete as required in your State.

Who Should Use This DEED OF HYPOTHECATION (CHARGE) Format?

Individuals, firms and companies that need a practical Indian deed / property instrument.
Advocates and clerks who want a clean starting draft to customise.
Businesses standardising vendor, HR, property or litigation paperwork.

Download Your Ready-to-Use DEED OF HYPOTHECATION (CHARGE) Now

Get instant access to this DEED OF HYPOTHECATION (CHARGE) on Contract Easily. Customise the blanks, review with counsel where stakes are high, and download for execution.

Final Note

This template is a general format for convenience. It is not a substitute for advice from a qualified Indian advocate. Stamp duty, registration, court fees and attestation rules vary by State and document type—confirm local requirements before signing or filing.

Important Guidelines

Customise this DEED OF HYPOTHECATION (CHARGE) to your facts: enter party names and addresses exactly as on ID or incorporation records, fill all blanks (dates, amounts, schedules), and keep operative clauses intact unless counsel advises otherwise. Confirm State stamp, notary, registration or filing rules before signing, and keep copies of the executed set. This is a general Indian deed / property instrument template—not a substitute for advice from a qualified advocate.

Supporting Documents

Documents commonly required when preparing and executing a DEED OF HYPOTHECATION (CHARGE). Exact lists vary by State and receiving authority.

Photo identity proof of parties / deponent
Aadhaar, PAN, passport, voter ID, or driving licence.
When: Always, for identification and KYC.
Address proof
Aadhaar, utility bill, or other accepted address proof.
When: Usually required for notarization / filing.
Supporting title or factual documents
Prior deeds, agreements, notices, court papers, or records relevant to this template.
When: When the document relies on earlier transactions or proceedings.
Passport-size photographs
As required by the notary or filing office.
When: Often for affidavits and certain applications.
Stamp paper (if applicable)
Non-judicial stamp paper of the local required denomination.
When: Where State law requires the instrument on stamp paper.

Frequently asked questions

What is a DEED OF HYPOTHECATION (CHARGE)?→

It is a standard Indian legal deed / property instrument template you can customise with parties, dates and particulars, then execute or file as your facts and local practice require.

Is this template valid across India?→

The structure is drafted for Indian legal practice, but stamp duty, registration, court fee and attestation rules are State-specific. Confirm requirements where you will execute or file.

Do I need a lawyer to use this template?→

It is a strong starting point. For disputed, high-value or complex matters, have a qualified Indian advocate review the completed draft before signing.

Can I edit the wording?→

Yes—adapt particulars to your facts. Do not delete operative legal clauses without advice, as that can weaken enforceability.

What stamp paper value should I use?→

Stamp duty depends on the document type and your State. Check the local stamp schedule or ask a stamp vendor / advocate before printing.

DEED OF HYPOTHECATION (CHARGE)

DEED OF HYPOTHECATION (CHARGE)

THIS HYPOTHECATION is made the _________ day of _________, in the year 20 _________

BETWEEN

…………………………………………………….. Mills Ltd.

a limited liability company having it registered office at ____________________ and its factory _________ at _________

(hereinafter called ‘the Mills’) of the one part

NOW THEREFORE IT IS HEREBY AGREED AND DECLARED as follows:

4. That the Bank may at any time at its option and without assigning any reason close the said Cash-Credit Account and stop all future advances and demand payment of the balance then due.

5. That on demand being made by the Bank

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DEED OF HYPOTHECATION (CHARGE)

About this agreement

Supporting Documents

Frequently asked questions

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