Question

The following is true about pawnor and pawnee under Indian Contract Act, 1872:

• A. The pawnor has the right of possession, enjoyment, and disposition of the property.
• B. The pawnee has a limited right to retain possession till the debt is paid off.
• C. The pawnee’s right of disposition is limited to the disposition of the pledge rights only, and the right to sell after giving reasonable notice to the pawnor.
• D. All of the above.

Answer 1

The Correct Option is D

Under the Indian Contract Act, 1872, the pawnor (the pledgor) has the right of possession and enjoyment of the pledged property, while the pawnee (the pledgee) has a limited right to retain possession until the debt is repaid. The pawnee may also sell the pledged property after giving reasonable notice to the pawnor.