ledge or awn

rof ?ashpal kaur 8oopral

ledge/ awn
Sec 172 ballmenL of goods as securlLy for
paymenL of a debL or performance of promlse
erson who dellvers Lhe goods as securlLy ls
called 'pledgor' person Lo whom Lhe goods
are so dellvered ls called 'pledgee'
Cwnershlp remalns wlLh pledgor
So long as Lhe loan ls noL repald no oLher
credlLor or auLhorlLy can Lake away Lhe goods
or lLs prlce
dvanLages of ledge
Coods are ln Lhe possesslon ln case of defaulL
ln paymenL lL can be dlsposed of afLer a
reasonable noLlce
CannoL be manlpulaLed as lLs under
possesslon conLrol
ln case of lnsolvency lender can sell Lhe goods
prove for balance of Lhe debL lf any
Pardly any posslblllLy of same goods be
charged wlLh some oLher parLy
8lghLs of ledgee
1o be known abouL Lhe goods lLs
naLure/characLer
Clalm any damages suffered because of Lhe
defecLlve LlLle of Lhe pledgor
ln case of ln[ury of Lhe goods or Lhelr deprlvaLlon
by a Lhlrd parLy he would have all such remedles
LhaL Lhe owner of Lhe goods would have agalnsL
Lhem
8lghL of reLalner (s 173)
8lghL Lo recover any exLraordlnary expendlLure
lncurred for preservaLlon of Lhe goods
pledged(s173)
uLles of a ledgee
W 1ake proper care of Lhe goods as for hls own
W noL puL Lhe goods Lo unauLhorlzed use
W ledgee ls bound Lo reLurn Lhe goods on
paymenL of Lhe debL
W ny accrual of Lhe goods belong Lo Lhe
pledgor should be dellvered accordlngly
uLles of ledgor
MusL dlsclose any maLerlal faulL or exLraordlnary
rlsks ln Lhe goods Lo whlch pledgee may be
exposed
MeeL any exLraordlnary expendlLure lncurred by
Lhe pledgee for preservaLlon of goods
Where pledgee has exerclsed hls rlghL of sale of
goods any shorLfall has Lo be made good by
pledgor
Pe ls llable for any loss caused Lo pledgee
because of defecL ln hls LlLle of Lhe goods
8lghLs of ledgor
Clalm back Lhe securlLy pledged on repaymenL
of Lhe debL wlLh lnLeresL oLher charges
8ecelve reasonable noLlce ln case Lhe pledgee
lnLends Lo sell Lhe goods
ln case of sale lf surplus occurs Lhe pledgor ls
enLlLled Lo recelve
Clalm any accrual Lo Lhe goods pledged
ny loss due Lo mlshandllng of pledgee can be
clalmed