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Ghulam Murtaza Korai Iobm

The document discusses the concept of a pledge, where goods are delivered as security for payment of a debt. It defines a pawnor as the person who delivers the goods as security, and a pawnee as the person the goods are delivered to. Some key rights of a pawnee are the right to retain the goods until the debt is paid, sell the goods if payment is not made, and sue the pawnor for recovery of the amount due. Duties of a pawnee include taking reasonable care of the goods and not making unauthorized use of them. The pawnor has a duty to comply with the terms of the pledge and compensate the pawnee for any extraordinary expenses.

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Sunil Kumar
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47 views

Ghulam Murtaza Korai Iobm

The document discusses the concept of a pledge, where goods are delivered as security for payment of a debt. It defines a pawnor as the person who delivers the goods as security, and a pawnee as the person the goods are delivered to. Some key rights of a pawnee are the right to retain the goods until the debt is paid, sell the goods if payment is not made, and sue the pawnor for recovery of the amount due. Duties of a pawnee include taking reasonable care of the goods and not making unauthorized use of them. The pawnor has a duty to comply with the terms of the pledge and compensate the pawnee for any extraordinary expenses.

Uploaded by

Sunil Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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GHULAM MURTAZA KORAI IoBM

The bailment of goods as security for payment of a debt or performance of a promise is called pledge (or pawn). Example A borrows Rs. 1,000,000. from Citi Bank and keeps his shares as security for payment of a debt. It is a contract of pledge. Meaning Of a Pawnor (or Pledger): The person who delivers the goods as security for payment of a debt or performance of a promise is called the Pawnor or Pledger. In the aforesaid example A is the Pawnor.

The person whom the goods are delivered as security for payment of a debt or performance of a promise is CALLED THE PAWNEE OR Pledgee. In the aforesaid example, Citi Bank is the Pawnee. Special Features of Pledge:It is the special property in goods, which passes to the pledge. General Property means the ownership of goods and special property means the possession of goods.

A pawnee has almost the rights as those of a bailee. The list of the rights is given below: RIGHTS OF RETAINER: The pawnee may retain the goods pledged (i) for payment of the debt or the performance of the promise, (ii) for the the interest of the debt, and (iii) all necessary expenses incurred by him in respect of the possession or the preservation of the goods pledged.

RIGHT TO CLAIM REIMBURSEMENT OF EXTRAORDINARY EXPENSES: The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged. RIGHT TO SUE PAWNOR: If the pawnor makes default in payment of the debt of the promise, the pawnee has a right to sue the pawnor for the recovery of the amount due.

RIGHT TO SELL: If the pawnor makes default in payment of the debt or promise, the pawnee has a right to sell the goods pledged after giving a reasonable notice of the intended sale, to the pawnor.

DUTY TO TAKE REASONABLE CARE OF THE GOODS PLEDGED: DUTY NOT MAKE UNAUTHORIZED USE OF GOODS: DUTY NOT TO MIX GOODS PLEDGED WITH HIS OWN GOODS: DUTY TO RETURN GOODS:

RIGHT TO GET PAWNEES DUTIES ENFORCED: RIGHT TO REDEEM: DUTIES OF PAWNOR 1. DUTY TO COMPLY WITH THE TERMS OF PLEDGE: 2. DUTY TO COMPENSATE PAWNEE FOR EXTRAORDINAY EXPENSES:

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