Indian Contract Act Section 177 — Defaulting pawner’s right to redeem

CHAPTER IX OF BAILMENT — Bailments of Pledges

Commercial / Corporate

Summary

If a specific time was agreed for paying back the debt or fulfilling the promise for which the goods were pledged, and the pawnor fails to pay or perform by that agreed time, the pawnor can still get the pledged goods back at any later time, as long as the goods have not actually been sold yet.

However, to redeem the goods in this situation, the pawnor must also pay any extra expenses that came about because of the default.

Official Text

If a time is stipulated for the payment of the debt, or performance of the promise, for which the pledge is made, and the pawnor makes default in payment of the debt or performance of the promise at the stipulated time, he may redeem the goods pledged at any subsequent time before the actual sale of them2; but he must, in that case, pay, in addition, any expenses which have arisen from his default.