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TMI Blog1928 (4) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jewels were sold by the plaintiff on 21st January 1926 and realized a sum of ₹ 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., ₹ 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 defendant's 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 sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make the sale without notice after the lapse of the fixed period, he is, in my opinion, bound to have made the sale immediately after that date or within a reasonable time thereafter, and it is, in my opinion, much more incumbent to do so when he could not but be aware that owing to gradual fall in prices the security would be diminished and the jewels would fetch a lower price. The rulings in Prag Narain v. Mul Chand [1897] 19 All. 535, Abdul Hakim Muhammad Sadik v. Joho Jautzen A.I.R. 1924 Lah. 319, read along with Kunj Behari Lal v. Bargava Commercial Bank, Jubbalpore [1918] 40 All. 522, seem sufficiently to support my view. I therefore find that the sale relied on by the plaintiff is not binding on the defendants. 7. Prag Narain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due notice of all the details should be given to the pawnor. They then proceed to observe as follows: It is quite clear that all that the law intends is that the pawnee should give the pawnor reasonable time within which to exercise his right of redemption and proceed to sell if the property be not redeemed. His right to sell is analogous to the seller's right of re-selling granted under Section 107, Contract Act, and we take it that the two rights must be exercised in more or less the same method. 9. It will be seen that no question was raised in this case as to whether the pawnee who had complied with the requirements of Section 176 by giving reasonable notice of the sale was thereafter bound to sell the pledged jewels within a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime from the date of the breach. 10. Section 107 also makes it clear that the vendee who has committed the breach has no claim to the property so that if it fetches more in the re-sale than the price due to the vendor, he has no right to claim the excess, but if it fetches less the difference will be the damages which he has to pay to the vendor. But the position of a pawnee is quite different. He holds the pledge as security for the debt due to him from the pawnor and though he has got the right to sell, he is not bound to sell at any particular time. So long as the security is ample, it may not be to his interest to sell it, but if the security is insufficient and the debtor has no other means of paying it will be to his interest to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention of the defendant is upheld, and the pawnee being bound to sell within a reasonable period after the expiry of the time given in his notice should be debited with the price which the thing pledged would have fetched if sold then, it will follow that the pawnor also would have no right thereafter to redeem the pledge-a view which is clearly opposed to his rights as-declared in Section 177. 12. There may be cases in which the pawnor and pawnee come to a binding agreement to the effect that the sale must be made at a particular time, but I am unable to hold that any such binding agreement has been made out in this case. The correspondence between the parties only makes out that the debtor-wanted further time for payment and had no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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