Indian Contract Act Section 175 — Pawnee’s right as to extraordinary expenses incurred

CHAPTER IX OF BAILMENT — Bailments of Pledges

Commercial / Corporate

Summary

The pawnee (the person who receives the goods as security for a loan) has the right to be paid back by the pawnor (the person who pledges the goods) for any extraordinary expenses the pawnee had to spend in order to keep the pledged goods safe and in good condition. This means that if unusual or unexpected costs arise while preserving the goods, the pawnee can recover those costs from the pawnor.

Official Text

Thepawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged.