Section 176 Indian Contract Act 1872
Section 176 of the Indian Contract Act 1872 is about Pawnee’s right where pawnor makes default. It is under “Bailments of pledges” of CHAPTER IX of the Act. CHAPTER IX is titled OF BAILMENT.
Pawnee’s right where pawnor makes default
If the pawnor makes default in payment of the debt, or performance, at the stipulated time of the promise, in respect of which the goods were pledged, the pawnee may bring a suit against the pawnor upon the debt or promise, and retain the goods pledge as a collateral security; or he may sell the thing pledged, on giving the pawnor reasonable notice of the sale.
If the proceeds of such sale are less than the amount due in respect of the debt or promise, the pawnor is still liable to pay the balance. If the proceeds of the sale are greater than the amount so due, the pawnee shall pay over the surplus to the pawnor.
Section 175 Indian Contract Act 1872 (Pawnee’s right as to extraordinary expenses incurred)