Question

When there is a surplus on sale after due notice to the pawnor, the pawnee shall pay
the excess to the pawnor.

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

Answer 1

Answer: (A)

False

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." 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."