Section 176 - Pawnee's right where pawnor makes default : Indian Contract Act 1872

What is Pawnee's right where pawnor makes default? Section 176 of Indian Contract Act 1872

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 pawnor.

INDIAN CONTRACT ACT 1872

Section 166 - Bailee not responsible on redelivery to bailor without title

Section 167 - Right of third person claiming goods bailed

Section 168 - Right of finder of goods, may sue for specific reward offered

Section 169 - When finder of thing commonly on sale may sell it

Section 170 - Bailee's particular lien

Section 171 - General lien of bankers, factors, wharfingers, attorneys and policy-brokers

Bailment of pledges

Section 172 - Pledge pawnor and pawnee defined

Section 173 - Pawnee's right of retainer

Section 174 - Pawnee not to retain for debt or promise other than that for which goods pledged. Presumption in case of subsequent advances

Section 175 - Pawnee's right as to extraordinary expenses incurred