BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The bailment of goods as security for payment of a debt or performance of a promise is called “pledge". The bailor is in this case called the “pawnor". The bailee is called “pawnee".

Detailed explanation-2: -Analysis: Pledge is a variety or specie of bailment. It is bailment of goods as security for payment of debt or performance of a promise. The person who pledges [or bails] is known as pledgor or also as pawnor, the bailee is known as pledgee or also as pawnee. In pledge, there is no change in ownership of the property.

Detailed explanation-3: -Under the Common Law a pawn or a pledge is a bailment of personal property as a security for some debt or engagement. A pawner is one who being liable to an engagement gives to the person to whom he is liable a thing to be held as security for payment of his debt or the fulfilment of his liability.

Detailed explanation-4: -This is mentioned in Section 173 of the Act. For example: ‘A’ pledged his house with a bank for a loan of INR 2, 50, 000. The interest on the same was INR 10, 000. The bank can retain the pledged house until ‘A’ repays the entire amount along with the interest i.e. INR 2, 60, 000.

Detailed explanation-5: -It is a special type of bailment. It is a bailment of goods as security for payment or performance of duty. The person who pledges the goods (or bailor) is the pledgor or pawner. The person to whom such goods are deposited is known as pledgee or pawnee (section 172).