“Pledge”, “pawnor” and “Pawnee” defined [Section 172]:
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 the “Pawnee”. 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. Under exceptional circumstances, the pledgee has a right to sell the property pledged. Section 172 to 182 of the Indian Contract Act,1872 deal specifically with the bailment of pledge.
For instance, A lends money to B against the security of jewelry deposited by B with him, A. This bailment of jewelry is a pledge as security for lending the money. B is a pawnor and A is a Pawnee.
In the case of , J& K Bank vs Tek Chand , Any kinds of movable property, goods, documents or valuables may be plaged.
Essentials of pledge:
Since Pledge is a special kind of bailment, therefore all the essentials of bailment are also the essentials of the pledge. Apart from that, the other essentials of the pledge are:
a. There shall be a bailment for security against payment or performance of the promise,
b. The subject matter of pledge is goods,
c. Goods pledged for shall be in existence,
d. There shall be the delivery of goods from pledger to pledgee .
