AIR 1962 MYSORE 48 ::ILR (1961) Mys 13

Mysore High Court

Hon'ble Judge(s): K. S. Hegde, Mir Iqbal Husain , JJ

(A) Contract Act (9 of 1872) , S.178A— Scope - Pawnor should have legal title on date of pledge. In order to come within the scope of section 178-A a person seeking relief thereunder must establish that the pownor had a legal title on the date of the pledge though that title is defensible either under Sec.19 or 19-A of the Contract Act. The essence of that provision is that the pawnor must have had a title to the goods pledged on the date of the pledge. A person who himself is a pledgee has no title to the property pledged with him. And if such a person pledges the said property, his pawnee cannot claim the benefit of S.178-A.(Para 11) (B) Contract Act (9 of 1872) , S.179— Pledge by pawnee - Extent of right of sub-pawnee - Original debt discharged by pawnor - No notice of sub-pledge to original pawnor - Sub-pawnee looses right in goods pledged with him. The pledgee has got only a right to retain possession of the goods pledged till the money borrowed is repaid. He is not a transferee of the goods pledged. The moment the money borrowed is repaid, the pawnor is entitled to the return of the goods pledged. It is immaterial in whose hands the goods pledged are on the date when the money borrowed is fully discharged. Throughout the period of the p....