September 25, 2021

RIGHTS OF BAILEE AND PLEDGEE

Bailee’s Rights:

1) Right to compensation: Under section 164 of the Indian Contract Act the bailor is responsible to the bailee for any loss that the bailee may sustain as a result of the bailor not being entitled to make bailment or receive back the goods or give directions regarding the goods. Essentially in situations where the bailor does not have the right to bail the goods or receive them back or give directions regarding the goods, the bailee may suffer substantial loss and thus the bailor is responsible for such loss. 

2) Right to expenses or remuneration: If the bailee has kept or carried the goods or done work on them for the benefit of the bailor based on the conditions of the bailment, the bailee is entitled to ask the bailor for payment of necessary expenses if the contract does not provide for a reward under section 158 of the Indian Contract Act. A braille has the right to get the charges he consented to before the bailment contract is signed, but if there is no such agreement, section 158 steps in.

3) Right of Lien: In certain situations where the bailee is not paid the appropriate charges he may retain the goods and not give it back to the bailor. The right to retain property until the charges due on that respective property are paid is known as Right of Lien. 

4) Right to Sue: Under section 180 of the Indian Contract Acta third person wrongfully restrains or deprives the bailee from having possession of the goods bailed to him or does them any injury he is entitled to use remedies which the owner would have done in his place and the bailee or the bailor is entitled to sue such person for deprivation or injury. 

Under section 181 of the Indian Contract Act, the compensation received as a result of the suit would be dealt with according to the interests of both the bailor and bailee. 

Pledgee’ Rights: 

1) Right of Retainer: Under section 173 of the Indian Contract Act the Pawnee can retain the goods which have been pledged for couple of reasons including payment of the debt, performance of a promise and even for the interest due on the debt and the necessary expenses incurred for the preservation of such goods which had been pledged.

Essentially pawnee has the right to retain the goods pledged until he is paid. Secondly the Pawnee can retain those goods only for the payment of debt for which the goods were pledged in the first place. Pawnee cannot retain the goods for payment of any other debt unless there is a contract to the contrary. 

2) Right to extraordinary expenses: Pawnee is entitled to receive extraordinary expenses from the pawner for the preservation of goods which have been pledged. However to receive such expenses he does not have the right to retain the goods. He has the right to sue and recover them. This right exists under section 175 of the Indian Contract Act. 

3) Right to Sell: Under section 176 of the Indian Contract Act In case the pawnor makes a default in payment of his debt or the performance of his promise within the accepted time period with regards to the goods pledged, then the pawnee has the right to sue the pawnor regarding the debt or promise and retain the goods as collateral security or he may even sell the goods which have been pledged after giving the pawnor reasonable notice of the sale of the goods.

In case the proceeds of the sale of such goods is less than the due amount than the pawnor is liable to pay the balance amount to the pawnee and if the proceeds of the sale results in money greater than the due amount then the pawnee has the responsibility of giving the surplus to the pawnor. 

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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