The power of sale conferred on a pawnee is to be exercised for his benefit according to his discretion in order to realize the debt due to him for which the pledge is a standing security.

Thiruvenkatachariar, J.

1. This case raises a question of some importance as regards the exercise by a pledgee of his right to sell the pledge for realizing the debt secured by the pledge. The material facts of the case are as follows:

2. The defendant borrowed from the plaintiff on 8th October 1922 Rs. 765 stipulating to pay interest therefor at a certain rate per mensem and the debt was secured by two gold ornaments weighing 36-1/8 tolas. In March 1924 the plaintiff sent a formal notice to the defendant informing him that unless the amount due to him was repaid on or before the 30th of that month he would sell the pledge. The defendant replied to that letter by Ex. B, dated 30th March 1924, and on the same day he also paid Rs. 100 to the plaintiff towards interest. In Ex. B the defendant wrote as follows:

I shall pay the balance of principal and interest by 30th April 1924 or pay the interest and write and give you a fresh paddu. If I fail to do so you may sell the articles (jewels) at my risk and credit the sale proceeds realized in our khatha. I shall pay the balance according to your credit and debit account. I shall not question you regarding the articles.

3. No further payment was made by the defendant as promised, nor was any fresh arrangement entered into between the parties. Then on 20th July 1924 the plaintiff sent another registered notice to the defendant informing him that the value of the jewels already pledged with him by the defendant is not sufficient security for the principal and interest due to him and that if the amount is not repaid within 24 hours he will sell the pledged jewels in the bazaar on 20th August 1924 without any further notice for realizing the amount due to him. This notice was replied to by the defendant on 19th August 1924 in which he asked for further time. He says in this letter:

I shall before 1st September 1924 pay you the principal and interest due to you and redeem the said jewels. If I fail to do so you sell the jewels at my risk without giving me any notice and credit the amount in the katha. I shall pay the balance that may be still due according to the credit and debit entries. I shall not raise any kind of dispute in respect of the said jewels.

4. The promised payment was not made. The plaintiff, however, did not sell the jewels then, nor for a considerable time afterwards. On 12th January 1926 the plaintiff sent another notice to the defendant informing him that if the debt is not repaid within 24 hours after the receipt of the notice the pledged jewels will be sold in the bazaar on 21st January 1926, and a suit will be brought for the recovery of the amount found short. This was replied to by the defendant on 16th January 1926. That letter has not been produced in this ease. The jewels were sold by the plaintiff on 21st January 1926 and realized a sum of Rs. 679-12-0. On 26th January 1926 the plaintiff wrote to the defendant enclosing an account of what was due to him on the pledge after crediting the amount realized in the sale and demanding payment of the amount still due, viz., Rs. 447-10-0. The defendant not having complied with that demand, the plaintiff brought the suit for the recovery of the said amount.

5. The defendants pleas were: (1) that the plaintiff should have sold the jewels in September 1924 and he did sell them then and his case that he sold the jewels only in January 1926 is not true. (2) That even if the sale was made by him in January 1926 the defendant is not bound by that sale, he is entitled to get credit for the value which the jewels would have fetched if they had been sold in September 1924, when the price of gold was much higher than what it was in January 1926.

6. The learned Subordinate Judge has found against the defendants plea that the jewels were in fact sold in September 1924. But he upheld the defendants other plea that the plaintiff should have sold the jewels in September 1924 and that the defendant should be credited with the amount whi