ISSUE:
Whether the first respondent pledged certain quantity of aero scraps purchased by him from military authorities at Bamrauli Depot, Allahabad and delivered possession thereof to the appellant?
Whether the appellant was entitled to any relief when his case was that the first respondent never delivered to him the said goods and the said agreement never ripened into a pledge?
RULE:
Section 176 of the Indian Contract Act, 1872, deals with the rights of a Pawnee and provides that in case of default by the pawner the Pawnee has (1) the right to sue upon the debt and to retain the goods as collateral security, and (2) the right to-sell the goods after reasonable notice of the intended sale to the pawner. So long, however, as the sale does not take place, the pawner is entitled to redeem the goods on payment of the debit.