If Goods are bailed (See contract of bailment) as Security for payment of a debt or performance of a promise such bailment is called "Pledge". The bailor is called 'pledger' and the bailee is called 'Pledgee'. Pledge, Pledger and Pledgee are also called as Pawn, Pawnor and Pawnee.
1.Rights of retaining:
Rights of Pawnee :
The Pawnee may retain the goods pledged until his dues are paid. He may retain them not only for the payment of the performance of the promise, but for the payment of the debt, and all necessary expenses incurred by him in respect of the position or for the preservation of the goods pledged. The pawnee can only exercise a particular lien over the goods.
2.Rigths of retainer subsequent advances:
When the Pawnee is lends money to the same pawnor after the date of right retainer over the pledged goods extends to subsequent advance also .this presumption can be rebutted only by a contract to the contrary.
3. Right to extraordinary expenses:
The Pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged. or such expenses, he has no right to retain the goods; he can only sue to recover them.
4. Rights against true owner:
when the pawonor’s title is defective .when the pawnor has obtained possession of the goods pledegd by him under a voidable contract has not been rescided at the time of the pledge , the panwee acquires a goods title to the goods ,provided he acts in good faith and without notice of the pawnor’s defect of title.
5. Pawnee’s righs where pawnor makes default:
Where the pawnor fails to redeem his pledge, the Pawnee can exercise the following rights:
(1) he may file a suit against the pawnor upon the debt or promise and may retain the goods pledged as a collateral security.
(2) he may sell the goods pledged after giving the pawnor a reasonable notice of the sale . out of these rights ,while the right to retain or sed the pawned goods are not concurrent, the right to sue and sell are concurrent rights,i.e the Pawnee may sue and at the same time retain the goods as concurrent security or sell them after giving reasonable notice of the seal to pawnor.
(3) he can recover any deficiency arising on the sale of he goods by him from the pawnor .but the shall have to hand over the suprplus, I any , realized on the sale of the goods to the pawnor