Indian Contract Act Section 179 — Pledge where pawnor has only a limited interest

CHAPTER IX OF BAILMENT — Bailments of Pledges

Commercial / Corporate

Summary

If a person pledges goods in which they have only a limited interest, the pledge is valid only to the extent of that limited interest. In other words, the pledge is effective only up to the value or scope of the interest the pawnor actually holds in the goods, and no further.

Official Text

Where a person pledges goods in which he has only a limited interest, the pledge is valid to the extent of that interest.