Meaning of Pawner and His Rights
A Pawner is the person who delivers goods to another (the Pawnee) as security for payment of a debt or performance of a promise. The rights of the pawner are governed by the Indian Contract Act, 1872 (Sections 172–176). While the pawnee holds the goods as collateral, ownership remains with the pawner. This means the pawner enjoys certain rights, including the right to redeem the goods on repayment of debt, the right to receive goods in proper condition, and the right to claim damages if the pawnee misuses or wrongfully sells the goods.
Right to Redeem and Protection of Ownership
The most important right of the pawner is the right of redemption under Section 177. Even if the pawner defaults in payment on the due date, he can still redeem the goods by repaying the debt along with any additional expenses before the pawnee actually sells them. Ownership of the pledged goods never passes to the pawnee; hence, the pawner retains a legal interest in the goods. If the pawnee sells the goods without giving reasonable notice, the pawner can sue for damages. These provisions protect the pawner from unfair treatment.
Other Rights of the Pawner
Apart from redemption, the pawner has the right to demand proper preservation of the goods by the pawnee, as per Section 151. The pawner may also claim any surplus amount if the pawnee sells the pledged goods and the sale proceeds exceed the outstanding debt. At the same time, if the pawner defaults, his liability is limited to the debt and expenses, and he cannot be charged beyond what is due. Thus, the law balances the pawnee’s security rights with the pawner’s ownership rights.
Real-Life Example
Suppose Arun pledges his gold jewelry to a bank for a loan of ₹2 lakhs. Later, he manages to arrange money but misses the due date. Before the bank sells the jewelry, Arun pays back the loan with interest and redeems his gold. If the bank had sold the gold without giving notice, Arun could have sued for damages. This shows the pawner’s strong right to redeem and protect his ownership in pledged goods.
Mnemonic to Remember – “RPS”
To remember the rights of a pawner, think of RPS:
- R = Right of Redemption (Sec. 177)
- P = Protection of Ownership (goods remain pawner’s property)
- S = Surplus Claim (if goods sold, pawner gets balance)
So, recall it as: “Pawner’s rights = RPS (Redemption, Protection, Surplus).”
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