PLEDGE:
RIGHTS AND DUTIES OF PAWNER AND PAWNEE:
BY-TANMOY HAZARIKA
ROLL NO. 114
WHAT IS A PLEDGE?
THE BAILMENT OF GOODS AS SECURITY FOR
PAYMENT OF A DEBT OR PERFORMANCE OF A
PROMISE IS CALLED”PLEDGE”.
THE BAILOR IN THIS CASE IS
CALLED THE PAWNER AND THE BAILEE IS
CALLED THE PAWNEE.
PLEDGE IS THEREFORE A KIND
OF BAILMENT.
DEFINITION:SEC35(1)”A CONTRACT BY WHICH A
PERSON RECIEVES SOME PROPERTY FROM
ANOTHER AS SECURITY FOR GRATING A LOAN
OR AS GUARANTEE FOR PERFORMING A JOB”
BASIC FEATURES:
TWO PARTIES.
PLEDGE CAN ONLY BE GIVEN BY THE
REAL OWNER OF THE PROPERTY.
PLEDGE CAN BE GIVEN ON BOTH
MOVABLE AND IMMOVABLE TYPE OF
PROPERTY.
IN CASE OF JOINT OWNERSHIP ONLY
OWN PROPERTY CAN BE PLEDGED.
PROPERTY WHICH IS PLEDGED CAN NOT
BE USED BY THE PAWNEE.
BASIC FEATURES:
RETURN THE PLEDGE PROPERTY.
RETURN THE SURPLUS TO THE DEBTOR
AFTER AUCTION.
RIGHTS OF THE PAWNER:
RIGHT TO RECEIVE BACK THE GOODS PLEDGED
FROM THE PAWNEE.
RIGHT TO RECEIVE ACCRETION TO THE GOODS
PLEDGED.
RIGHT TO CLAIM COMPENSATION AGAINST THE
PLEDGE FOR ANY LOSS HE SUFFERS DUE TO
NEGLIGENTLY HANDLING,MIXTURE AND
UNAUTHORIZED USE OF GOODS ETC.
RIGHTS TO RECEIVE A NOTICE FROM THE
PAWNEE BEFORE SALE OR AUCTION OF THE
GOODS PLEDGED.
CONT.
RIGHT TO SUE THE PAWNEE IN THE COURT TO
RECOVER THE GOODS IN CASE SALE OR
AUCTION TOOK PLACE WITHOUT NOTICE.
RIGHT TO HAVE SURPLUS OR EXCESS AMOUNT
OBTAINED BY THE SALE OR AUCTION OF THE
GOODS PLEDGED.
RIGHT TO REDEEM THE GOODS PLEDGED
BEFORE SALE OR TRANSFER BY REPAYING THE
DEBT,INTEREST,FINE AND OTHER EXPENSES.
DUTIES OF PAWNER:
PAWNER HAS THE DUTY TO DISCLOSE ALL THE
DEFECTS IN THE GOODS TO BE PLEDGED.
PLEDGER HAS THE DUTY TO REPAY BACK HIS
LOAN,INTEREST, EXPENSES IF ANY ,WITHIN OR
AT THE SPECIFIED TIME.
PLEDGER HAS TO BEAR EXTRA ORDINARY
EXPENSES FOR TAKING CARE OF THE GOODS
PLEDGED OR HAS TO BEAR EXTRA ADDITIONAL
LAIBILITIES DUE TO DEFAULT OF REPAYING
LOAN.
NOT TO PLEDGE THE GOODS WHICH DOES NOT
BELONG TO HIM.
Rights of Pawnee
1)Pledgee has the right to retain the goods pledged
until the pledger repays his debts,interest and
other expenses if any.
2)Pledgee has the right to sell or auction the goods
pledged if the pledger is unable to repay within the
specified time.
3)Pledgee has the right to transfer the goods in his
own name if the pledged loan is not recovered by
selling or auctioning.
cont.
4)Pledgee has right to claim compensation against
the pledger for any loss suffered by him due to
default in payment of debt in time.
5)If loan amount including interest and other
expenses is not recovered by selling or auctioning
the pledged goods of the pledger the pledgee can
recover the due amount from other assets of the
pledger.
6)If the pledger pledged the goods obtained by him
unknowingly,as soon as he is aware of the fact ,
he can rescind the contract.
Duties of Pawnee
1)Pledgee has to take reasonable care of goods
pledged.
2)Pledgee should make any unauthorized use of the
goods pledged.
3)Pledgee should not mix the the goods pledged
with his own without the consent of the pledger.
4)Pledgee should return the goods pledged to the
pledger after payment of debt or completion of
work.
5)Pledgee has to return the accretion or profit from
the goods pledged.
Duties of Pawnee
1)Pledgee has to take reasonable care of goods
pledged.
2)Pledgee should make any unauthorized use of the
goods pledged.
3)Pledgee should not mix the the goods pledged
with his own without the consent of the pledger.
4)Pledgee should return the goods pledged to the
pledger after payment of debt or completion of
work.
5)Pledgee has to return the accretion or profit from
the goods pledged.
cont.
6)Pledgee has to indemnify the pledger for any loss
suffered by him if ,if the goods are lost,destroyed
etc.
7)Pledgee has to refund the surplus amount to the
pledger after selling or auctioning of the pledged
goods.
