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  • Rights & Duties of A Pledgor & Pledgee

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    Ramani Rajesh
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    Rights & Duties of a Pledgor & Pledgee

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    13K views7 pages

    Rights & Duties of A Pledgor & Pledgee

    Uploaded by

    Ramani Rajesh

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    Rights & duties of a

    Pledgor & Pledgee


    Rights of Pledgee
    • Disclose any defects or faults in the goods
    pledged which are within his knowledge.
    • To claim any damages suffered.
    • A pledgee’s rights are not limited to his
    interests in the pledged goods.
    • Pawnee’s right of retainer.
    • To recover any extraordinary expenditure
    incurred for the preservation of goods
    pledged.
    Duties of a Pledgee
    • The pledgee is required to take as much care
    of the goods.
    • The pledgee must not put the goods to an
    unauthorized use.
    • The pledgee is bound to return the goods on
    payment of the debt.
    • Any accruals to the goods pledged belong to
    the pledgor and should be delivered
    accordingly.
    Duties of a pledgor
    • He must disclose to the pledgee any material
    faults or extraordinary risks in the goods to
    which the pledgee may be expose.
    • He is responsible to meet any extraordinary
    expenditure incurred by the pledgee for the
    preservation of the goods.
    • Where the pledgee has exercised his right of
    sale of goods, any shortfall has to be made
    good by the pledgor.
    • He is liable for any loss caused to the pledgee
    because of defects in his title to the goods.
    Right of a pledgor
    • The pledgor has a right to claim back the
    security pledged on repayment of the debt
    with interest and other charges.
    • He has a right to receive a reasonable notice
    in case the pledgee intends to sell the goods,
    and in case he does not receive the notice he
    has a right to claim any damages that may
    result.
    • In case of sale, the pledgor is entitled to receive
    from the pledgee any surplus that may remain
    with him after the debt is completely paid off.
    • The pledgor has a right to claim any accruals to
    the goods pledged.
    • If any loss is caused to the goods because of
    mishandling or negligence on the part of the
    pledgee, the pledgor has a right to claim the
    same.

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