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Banking Book

Banking Book

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Publicado por9290010274
Banking Book
Banking Book

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Published by: 9290010274 on Nov 08, 2011
Direitos Autorais:Attribution Non-commercial

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08/03/2013

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The rights of a pledgee are the following:

1. Right of Retainer: The first and foremost right of the pledgee is to retain the goods
till he is paid not only the debt but also interest thereon, all necessary expenses
incurred by him in respect of the possession or the preservation of the goods
pledged.

2. Right to Extraordinary Expenses: Section 175 of the Indian Contract Act, 1872
states: “The pledgee has right to recover from the pledger extraordinary expenses
incurred by him for the preservation of the goods pledged, but it should be noted
here that pledgee has no right of lien for extraordinary expenses.”
3. Right in Case of Default of the Pledger or Pawner: In case of default by the
pledger in the payment of debt or the performance of promise at the stipulated
time, the pledgee can exercise the following rights under Section 176 of the Indian
Contract Act, 1872.

Modes of Creating Charge

273

(a) The pledgee has a right to bring a suit on the debt and can retain the goods
pledged as a collateral security.
(b) The pledgee has a right to sell the goods pledged after giving reasonable notice of
sale to the pledger.

4. Right of Particular Lien: Under Section 174 of the Indian Contract Act, 1872,
“A pledgee has no right to retain the goods for any debt or promise other than the
debt for which the pledge was made.” In the absence of anything to the contrary, the
pledgee may retain the goods pledged for the subsequent advances made by him.

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