Ajoy Khanderia vs Barclays Bank & Anr. on 20 July, 2021

“Section 176 – Pawnee’s right where pawnor makes
default. – 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.”
Source: Indian Kanoon

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