Question

Following is true about the rights of a pawnee:

• A. Pawnee has a right of retainer.
• B. Right of retainer is in the nature of a general lien with the pawnee.
• C. Pawnee’s right of receiving extraordinary expenditure depends upon the terms of pledge.
• D. Pawnee has an absolute right to sell the property pledged with him.

Hint:

Think: retainer (S.173), recover extraordinary expenses (S.175), sell after notice on default (S.176).

Answer 1

The Correct Option is A

Step 1: Statutory rights of a pawnee.
Under the Indian Contract Act, 1872:
- S.173 gives the pawnee a right of retainer for the debt, interest and necessary expenses.
- S.175 entitles the pawnee to recover extraordinary expenses for preservation from the pawnor (not dependent on contract terms).
- S.176 allows sale on default after reasonable notice; hence the right to sell is not absolute.
Step 2: Eliminate incorrect options.
(b) Wrong — the pawnee’s lien is particular, not a general lien.
(c) Wrong — the Act itself grants entitlement to extraordinary expenses.
(d) Wrong — sale requires default and prior reasonable notice. \[ \boxed{(a)} \]