2.

The goods are delivered back to the bailor or pawnor after accomplishment of purpose or Special Contracts
expiry of stipulated time.
The two, however, differ in a number of ways such as the following.
Purpose  Pledge has a specific purpose, i.e., repayment of a debt or performance of a promise, Notes
whereas bailment has a general purpose.
Use of goods  The pawnee has no right to make any use of the goods pledged. On the other hand,
in bailment the bailee uses the goods if the terms of bailment so provide.

Rights and Duties of the Pawnee

Pledge being a species of bailment, the rights and duties of the pawnor and pawnee are almost
similar to those of the bailor and bailee.

Rights of pawnee
The Law confers the following rights to the pawnee.
Right of retaining goods  The pawnee has a right to retain the goods pledged for
1. payment of the debt
2. performance of the promise, and
3. all expenses incurred by him in respect of the possession or for the preservation of the goods
pledged [Section 173].
However, the pawnee shall not, in the absence of a contract to that effect, retain the goods
pledged for any debt or promise other than the debt or promise for which they are pledged.
Still, such a contract, in the absence of anything to the contrary, shall be presumed in regard to
subsequent advances made by the pawnee (i.e., without fresh security) [Section 174].
Right as to extraordinary expenses  The pawnee is entitled to receive from the pawnor extraor-
dinary expenses incurred by him for the preservation of the goods pledged [Section 175].
Right to sue when pawnor makes default  Should the pawnor default in payment of the debt, or
performance of the promise, at the stipulated time, the pawnee may bring a suit against the pawnor
upon the debt or promise while retaining the goods pledged as collateral security [Section 176].
Right to sale  Upon pawnor’s default as regards payment of debt or performance of the promise,
the pawnee may sell the goods pledged, on giving the pawnor reasonable notice of the sale. If the
proceeds of such sale are less than the amount due in respect of the debt or promise, the pawnor
is still liable to pay the balance. If the proceeds of the sale are greater than the amount so due, the
pawnee shall pay over the surplus to the pawnor [Section 176].
Right to have good title to the goods  Where the pawnor’s title with regard to the goods pledged
by him is defective, the pawnee acquires a good title to the goods, provided he acted in good faith
and without notice of the pawnor’s defect in title [Section 178A].

Duties of pawnee
A pawnee has the following duties:
1. Duty to take reasonable care of the goods pledged
2. Duty not to make personal use of the goods pledged
3. Duty not to mix goods pledged with his own goods
4. Duty to return the goods pledged after the debt has been paid or the promise has been
performed
5. Duty not to commit any act that is inconsistent with the terms of pledge
6. Duty to deliver accretion, if any, to the goods pledged.

Rights and Duties of the Pawnor

Rights of pawnor
Foremost of all his rights, the pawnor has a right to get back the goods pledged plus increase
thereon, if any, by him, after paying off the amount of debt in full and other charges (if appli- Self-Learning
cable), or performing the promise. Material  103