Pledge

Definition

A special type of Bailment where goods are delivered as security for the payment of a debt or performance of a promise. The bailor is called the Pawnor (Pledgor) and the bailee is called the Pawnee (Section 172, ICA 1872).

Example

"Depositing gold jewellery with a bank as security for a ₹2 Lakh loan is a Pledge. The bank (Pawnee) can sell the gold if the loan is not repaid."

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