Question

Pawnee may retain the goods pledged as collateral security, or sell the goods pledged by giving a reasonable notice to the pawnor.

• A. False
• B. True
• C. Partly true
• D. None of the above

Answer 1

The correct option is B True

Section 176 states: Pawnee’s right where pawnor makes default—"If the pawnor makes default in payment of the debt, or performance; at the stipulated time or the promise, in respect of which the goods were pledged, the pawnee may bring a suit against the pawnor upon the debt or promise, and retain the goods pledged as a collateral security; or he may sell the thing pledged, on giving the pawnor reasonable notice of the sale."