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RAJIV SAHAI ENDLAW, ASHA MENON
AJOY KHANDERIA – Appellant
Versus
BARCLAYS BANK – Respondent
JUDGMENT :
RAJIV SAHAI ENDLAW, J.
1. The legal question arising for consideration, in this writ petition under Article 226 of the Constitution of India, is, whether by virtue of Section 176 of the Indian Contract Act, 1872 as under:-
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.”
the pawnor, even if different from borrower or the principal debtor, becomes liable for payment of entire debt, even if has not furnished any guarantee for repayment of the entire debt i.e. over and above the value of the pawned goods.
2. The aforesaid legal question has arisen in the fol
under Section 176 of the Contract Act, the pawnor, if not otherwise liable for the debt as a borrower or as a guarantor or otherwise, does not merely from the act of making a pledge, become liable to....
Rights of the pawnee are prioritized over claims of unsecured creditors in the context of pledged goods.
It is true that jurisdiction of High Court under Art. 226 is an extraordinary jurisdiction vested in High Court not for purpose of declaring the private rights of the parties but for purpose of ensur....
The main legal point established in the judgment is the limitation on a bank's power to retain pledged goods, emphasizing the need for adherence to higher standards of transparency and reasonableness....
The main legal point established in the judgment is that the bank's right of general lien under Section 171 of the Indian Contract Act cannot be extended after the satisfaction of the loan amount, an....
(1) Contract of guarantee is a contract to perform promise or discharge liability, of a third person in case of his default(2) A person having only security interest over assets of corporate debtor, ....
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