Question

Describe the rights and duties of pawner and pawnee

Answer 1

Rights and duties of the pawner and pawnee

Rights and duties of the pawner

Right to receive goods till sole (Sec. 177). If a time is tipulated for the payment of the debt or performance of the promise, for which the pledge is made, and the pawnor makes default in the payment of the debt or the performance of the promise at the stipulated time he may redeem the goods pledged at any subsequent time, before their actual sale of them, but he must in that case pay, in addition, any expenses which might have arisen from his default.

Rights and duties of the pawnee

1.    Right to receive payment of the debt or to obtain the performance of promise with interest and expense(Sec. 173). Pawnee has a right to retain possession on the goods pledged till he obtains payment of his debt interest on that debt and all other necessary expenses which he might have incurred for the preservation of the goods pledged or in respect, of his possession.

2.    Right of Particular lien (Sec. 174). Pawnee has no right to retain his possession over the goods pledged for any debt or promise other than the debt or promise for which they were pledged unless otherwise provided for, by a contract.

3.    Right to receive extraordinary expenses (Sec. 175). Pawnee is also entitled to receive from the pawnor any extraordinary expenses which he might have incurred for the preservation of the goods pledged.

4.    Pawnee’s right in case of default of the pawnor (Sec. 176). In the case of default by the pawnor in the payment of debt or the performance of promise at the stipulated time or on demand or within reasonable time, the pawnee can exercise the following two rights:

(a)  He has a right to bring a suit on the debt or promise and can retain the goods pledged as a collateral security.

(b)  He has also a right to sell the goods pledged after giving reasonable notice of sale to the pawnor.

He has a right to claim any deficit arising from the sale of the goods pledged from the pawnor. He will have to return to the pawnor any excess obtained by the sale of goods pledged beyond the amount necessary to pay the debt and other expenses due.

5.    Pawnee must not use the goods pledged. He must not use goods pledge unless they are such as will not deteriorate by wear.

Besides the above rights and duties, all other rights and duties of the bailor and bailee apply equally to pawnor and the pawnee.

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