Notes of BCom CA And Finance, Business Regulation & Business Regulation 20220128_001034.jpg - Study Material
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: presenvation and maintenance : The pledger can enforce the, reservallon and proper maintenance of the goods pledged if the pawnee is, careless My Bie and maintaining the property pledged., 4. Rights_of an a ordinary debtor : The pawnor as a debtor has various, rights given to him by statute enacted for the protection of debtors eg. Money, Lenders Act., 5, Right to receive any increase of profits from pledged goods : The, awnor has apaeu to receive any increase of profits from pledged goods, during the period of pledge. The right is subject to a contract to the contrary, (Section 163), puties of Pawar or Pledger : In addition to the duties of a bailor,, which are already discussed, the following are some of the duties of the, pawnor, 1. Duty to repay, the loan : It is the duty of the pawnor to repay the debt, with in the stipulated.time., , 2. To pay extraordinary expenses incurred by the pawnee : It is the, duty of the pawnor to pay the extra expenses incurred by the pawnee for the, preservation of the goods pledged with him. ;, , Distinction between Bailment and Pledge, , Both bailment and pledge have some common features.. Both are created by, contract between the parties and involve transfer of possession of goods, from one person to another. In both the cases,only movable property can be, the subject matter of the contract. But following are the notable points of, distinction between the two., , 1. Purpose : Bailment may be any kind of purpose such as safe custody., repair, use, conversion of form, transportation etc. While pledge is made for, a specific purpose i.e., repayment of a debt or performance of a promise., , 2. Right to use : In bailment, a bailee may have the right to use the goods, by the terms of bailment so provide. But in Pledge, the pledgee does not, have any right to use the goods pledged with him., , 3. Right to sell : In pledge, in case of default by the pledger to repay the, , debt, the pledgee may after giving notice to the pledger has a right to sell the, pledged with him. On the other hand, in bailment, the bailee has no, , goods, , such right to sell the goods. He may either retain the goods or sue for his, charges., , 4. Lien ; In case of bailment, lien can be exercised only for the labour, , 472