Section 176 - Pawnee's right where pawnor makes default : Indian Contract Act
What is Pawnee's right where pawnor makes default? Section 176 of Indian Contract Act
Section 176 of Indian Contract Act 1872 : "Pawnee's right where
pawnor makes default"
176. If the pawnor makes default in payment of the debt, or
performance, at the stipulated time of the promise, in respect
of which the goods were pledged, the pawnee may bring a suit
against the pawnor upon the debt or promise, and retain the
goods pledged as a collateral security; or he may sell the thing
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