What are the Rights of Pawnee?

A Pawnee has the following rights:

1. Right of retainer:

The Pawnee may retain the goods pledged not only for repayment of the debt or the performance of the promise, but also for the interest due on the debt, and all necessary expenses incurred by him in respect of the possession or for the preservation of the goods pledged.

But the pawnee is not entitled to retain the goods in case the amount due is offered, i.e., tendered.

He loses his right to retain the goods and the pawnor can recover the goods (Sec. 173).

2. Right of particular lien:

This right of retainer does not apply to any other debt or promise. However, such an interest in the absence of anything to the contrary, shall be presumed to cover subsequent advances made by the pawnee (Sec. 174).

3. Right to recover extraordinary expenses:

The pawnee is entitled to recover from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged.

4. Rights on default by pawnor:

(i) Suit against the pawnor to recover the amount:

If the pawnor makes a default in payment of the debt, or performance of the promise at the stipulated time, the pawnee may file a suit to recover the amount due to him and keep the goods pledged as a collateral security.

(ii) Sell the goods after giving a notice of sale: In case the pawnee sells the goods after giving a notice and there is deficit then the pawnee can recover the deficit. If there is a surplus on sale, he will have to return such surplus to the pawnor.