Under the Sale of Goods Act, 1930, transactions in the form of a contract of sale which are intended to…

Under s.66(3) the provisions of the Act relating to contracts of sale "do not apply" to a transaction in the form of a sale that is intended to operate as a mortgage, pledge, charge or other security. Such a transaction is not void for that reason; it is governed by the law of security instead of being treated as a sale or an agreement to sell.