Indian Contract Act Section 173 — Pawnee’s right of retainer

CHAPTER IX OF BAILMENT — Bailments of Pledges

Commercial / Corporate

Summary

The pawnee (the person who receives goods as security for a loan or promise) has the right to keep the pledged goods until the debt is paid or the promise is fulfilled. This right of retainer covers not just the original debt or promise, but also the interest on that debt, and any necessary expenses the pawnee had to pay to take care of or keep possession of the pledged goods.

Official Text

Thepawnee may retain the goods pledged, not only for payment of the debt or the performance of the promise, but for the interest of the debt, and all necessary expenses incurred by him in respect of the possession or for the preservation of the goods pledged.