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.
Related Judgments
- CENTRAL BANK OF INDIA vs SIRIGUPPA SUGARS & CHEMICALS LTD. & ORS — Supreme Court of India (2007)
- MAHARASHTRA STATE CO-OPERATIVE BANK LTD. vs THE ASSISTANT PROVIDENT FUND COMMISSIONER AND ORS — Supreme Court of India (2009)
- LALLAN PRASAD vs RAHMAT ALI & ANR — Supreme Court of India (1966)
- INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED vs B.P.L. LIMITED — Supreme Court of India (2015)
- Gita Sarkar vs The State of West Bengal and Ors., Mr. Subrata Bhattacharjee, …for the — Calcutta High Court (Kolkata Principal Seat) (2024)
