The bailment of goods as security for payment of a debt or performance of a promise is called a ‘Pledge’. The bailor in this case is called as ‘Pawnor’. The bailee is called the ‘Pawnee’.

example- A borrows rs. 100 from B and keeps his watch as security for payment of debt with B. The bailment of watch is  called a Pledge.

Rights of Pawnee

1. Right of retainer (sec. 173) The pawnee has right to retain goods until his dues are paid. he has right to retain the goods pledged not only for payment of the debt or performance of the promise but for interest due in the debt and all necessary expenses incurred by him in respect of possession and preservation of goods pledged. Thus right of Pawnee can be called as Pawnee’s right of particular lien.

2. Right of retainer of  subsequent advances (sec 174) – When the pawnee lends money to the same debtor after the date of pledge without any further security, it is presumed that the right of retainer extend even to subsequent advances. Although Pawnee has a right of particular lien only, this section allows him to track his subsequent advances to the original debt in the absence of any agreement to the contrary.

3. Right to extraordinary expenses ( sec. 175) The Pawnee also has the right to recover from the pawnor extraordinary expenses incurred by him for the preservation of goods pledged. but he cannot retain the goods pledged. He has right to sue the Pawnor for recovery of such expenses.

4. Right to sue the Pawnor or sell the goods on default of the Pawnor (sec 176) – Where a pawnor makes default in the payment of the debt or performance of promise, the pawnee may exercise either of the following rights –

(a) he may bring a suit against the pawnor for recovery of the amount due to him.

(b)he may himself sell the goods pledged, after giving to the pawnor a reasonable notice of his intention to sell.

In connection with the right to sell following points must be adhered to :

        (i)   Giving a reasonable notice is statutory obligation and cannot be waived by agreement. A sell without notice is void.

        (ii) The pawnee cannot sell the goods to himself.

        (iii) if proceeds of such sale are insufficient to meet the full claim of the pawnee, he may recover the balance from pawnor, but if there is surplus , he must pay it over to the Pawnor.


  1. To take reasonable care of the goods pledged
  2. not to make any authorized use of goods pledged.
  3. not to mix the goods pledged with his own goods.
  4. not to do any act in violation of the terms of contract.
  5. to return the goods pledged.
  6. to deliver the accretion of the goods pledged.




  1. enforcement of Pawnee’s duties.
  2. Pawnor’s right to redeem (177) – A pawnor who defaults in payment of the debt amount at the stipulated date, has a right to redeem the debt at any subsequent time before the actual sell of goods pledged. in this case, he must pay any additional expense which has arisen due to his default.



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