BHARATHY KRISHNAN A

IIIrd YEAR BBA.LL.B(HONS)

A STUDY ON RIGHTS AND DUTIES OF THE

PAWNOR AND PAWNEE

ABSTRACT
The legal transfer of products as security for payment of a debt or performance of a promise
is named ‘pledge’. The deliverer is during this case known as the ‘pawnor’. The agent is
named ‘pawnee’. —The legal transfer of products as security for payment of a debt or
performance of a promise is named ‘pledge’. The deliverer is during this case known as the
‘pawnor’. The agent is named ‘pawnee’."This paper deals about the rights and duties of the
pawnor and Pawnee.

OBJECTIVES
 To know about the rights and duties of Pawnee.
 To study about the rights and duties of Pawnee.
Rights of a Pawnee

The rights of a Pawnee area unit as follows:

(1) Right of retainer: in step with section 173 of the Indian Contract Act the Pawnee has the
proper to retain the products pledged with him /Her if the Pawnor / grownup doesn't repay the
dues or doesn't perform the promise. The Pawnee can also retain the products until the
Pawnor pays the interest due on the debt.
Illustration
Ramnath a farmer took a loan of rupees fifty thousand from the shark for his daughter’s
wedding and he unbroken his cow with the shark as a security for payment of the debt.
Ramnath did not come the money on time; as a result the shark had a right to retain the cow
with him until Ramnath paid back the loan quantity.

(2) Right of retainer for resulting advances: in step with section 174 of the Indian Contract
Act if the pawnee lends cash to constant pawnor once the date of the pledge then the
pawnee’s right of retention of products extends to resulting advances.

Illustration
Ramnath a farmer took a loan of rupees fifty thousand from a shark for his daughter’s
wedding and he unbroken his cow with the shark as a security for payment of the debt for one
year. once a year Ramnath paid back all the money he had taken to the money- investor and
conjointly took a recent loan of rupees twenty thousand from him. The shark preserved the
cow as a security for the following loan.

(3) Right to extraordinary expenses: in step with section one hundred seventy five the Pawnee
is entitled to receive from the pawnor the compensation of extraordinary expenses incurred
by him for the safe keeping of the products pledged with him. although he has no right to
retain the products for non-payment of such expenses, nevertheless he/she will sue the
Pawnor for the recovery of such expenses.
Illustration
Ramnath a farmer took a loan of rupees fifty thousand from the usurer for his daughter’s
wedding and he unbroken his cow with the usurer. The cow fell sick and therefore the usurer
had up-to-date the expenses on her medical treatment. therefore the usurer had a right to be
stipendiary by Ramnath for the medical expenses. although the usurer didn't have the correct
to retain the cow for recovery of such expenses, he had the correct to sue Ramnath (the
pledger) for recovery of the expenses.

(4) Right against true owner, once the Pawnor’s title is defective: in step with section 178-A,
“if the Pawnor possesses the possession of products that he /she has pledged with the Pawnee
beneath a revocable contract (by fraud, falsity, undue influence and coercion)31 and
therefore the contract has not been rescinded at the time of the pledge, the Pawnee acquires a
decent title to the products. The Pawnee gets a decent title only he acts in straightness and
doesn't have the data of the Pawnor’s defect of title”.

Illustration
Ramnath a farmer took a loan of rupees fifty thousand from the usurer for his daughter’s
wedding and he unbroken his cow with the usurer as a security for payment of the debt. truly
the cow belonged to Ramnath’s elder brother Shyamnath. The usurer was ignorant
concerning this. therefore Shyamnath didn't have the correct to require the cow back from the
usurer throughout the amount of the pledge.

(5) Right to pass though the Pawnor any deficiency arising on the sale of the products and
liability to the Pawnor to come any surplus, if any, realised on the sale of goods: during this
case if the pawnor fails to repay inside the date then the pawnee includes a right to sell the
products pawned and recover the money from it. just in case the sale issue square measure
quite the loan quantity then the pawnee is prone to come the excess to the pawnor, and if the
sale issue square measure but the loan quantity then the pawnee will recover the deficient
quantity from the pawnor.

Illustration
Ramnath a farmer took a loan of rupees fifty thousand from a usurer for his daughter’s
wedding and he left his cow with the usurer as a security for payment of the debt for a year.
A year irreligious and Ramnath couldn't pay back the debt. therefore the usurer
oversubscribed the cow to recover his cash. once commercialism the cow he got rupees 10
thousand that was but the loan cash. therefore the deficient cash may well be recovered from
Ramnath.
Duties of the Pawnee

The duties of the Pawnee below the contract of pawn (pledge) are as below.
Care of products
It is the duty of the Pawnee to require due care of products pledge with him.
No unauthorised use
It is the duty of the Pawnee to form any such use of the products pledge with him, that has
not been approved to him in keeping with the terms of the contract.’
No likelihood of type
The Pawnee cannot modification the shape of the products pledge with him. If he so, the
pawnor will claim for harm.
No Mixture
The Pawnee cannot combine {the merchandise|the products} of the pawnor together with his
own merchandise or with thusme one different goods not belong to pawnor to try to to so, the
Pawnee will get the compensation for separation of his merchandise from different
merchandise.
No Inconsistent act
The Pawnee cannot take any act with the products pledge with him, that is inconsistent with
the terms of the contract. If he will thus, the pawnor will claim for damages.
Comeback of Profit
If the Pawnee has attained any cash in on the utilization of the products pledge with him,
whom he cannot use in keeping with the terms of the contract, he should come back such
profit to the pawnor.
Comeback of ProductsThe Pawnee should come back merchandise pledge with him to the
pawnor as shortly because the debt is paid fully or pawnor performs promise.

Rights of a Pawnor:
The rights of a Pawnor area unit as follows:

(1) Right to urge merchandise back: once returning the debt or once performing arts the
promise the pawnor is entitled to urge his merchandise back.
Illustration
Ramnath a farmer took a loan of rupees fifty thousand from a shylock for his daughter’s
wedding and he unbroken his cow with the shylock as a security for payment of the debt for a
year. once a year Ramnath came the money to the shylock and took his cow back.

(2) Right to redeem debt: just in case the grownup fails to repay the debt or doesn't perform
the promise inside the stipulated time, then he/she should redeem the products pledged at any
sequent time before the particular sale of the products occur. but the pawnor should pay any
expenses that have arisen owing to his / her default.
Illustration
Ramnath a farmer took a loan of rupees fifty thousand from a shylock for his daughter’s
wedding and he unbroken his cow with the shylock as a security for payment of the debt for a
year. when a year Ramnath couldn't pay the loan. cash. As a result the shylock set to sell the
cow before the day once the cow was to be sold-out. Ramnath organized the money and gave
it to the shylock. but he had to pay more money for the extra days when the expiration of the
loan amount.

(3) Right for preservation and maintenance of product: The Pawnor encompasses a right to
ascertain that his/ her goods area unit unbroken safely with the Pawnee, that's that the Pawnee
preserves the products and properly maintains them.
Illustration
Ramnath a farmer took a loan of rupees fifty thousand from a shylock for his daughter’s
wedding and he unbroken his cow with the shylock as a security for payment of the debt for a
year. Ramnath had a right to ascertain that his cow was unbroken properly by the shylock.

(4) Rights of a standard someone: The Pawnor with the exception of having all the rights
mentioned higher than conjointly has the rights of a debtor.

Duties of the Pawnor

Following are the duties of pawnor.

Duty to Pay Debt

It is duty of the pawnor to pay the quantity of debt or perform the contract at intervals
stipulated time in keeping with the terms of the contract,
Duty to Compensate
It is the duty of the pawnor to compensate the Pawnee for a unprecedented expenses incurred
by him for the preservation of the products pledge'(Sec. 175).

Duty to Pledge
It is the duty of the pawnor to pledge solely those merchandise that he has smart title. If the
pawnor title’s is flawed and this reality isn't within the information of the Pawnee, the
Pawnee has smart title.