"Pledge", "Pawnor" and "Pawnee" defined
Section 172 of the Indian Contract Act, 1872 deals with "Pledge", "Pawnor" and "Pawnee" defined. The bailment of goods as security for payment of a debt or performance of a promise is called "pledge". The Act came into force on 01 Sep 1872.
The bailment of goods as security for payment of a debt or performance of a promise is called "pledge". The bailor is in this case called the "pawnor". The bailee is called the "pawnee".
Section 172, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Central Bank of India v. Siriguppa Sugars and Chemicals Limited
Court's Decision & Legal Precedent
Judgment of Main Case order-8.pdf 2007-08-07 DATE VERIFIED. CA 3499-3500/2007. P.K. Chatterjee / P.K. Balasubramanyan. Reportable. Isolates Contract 172: the pawnee’s special property in pledged goods under ss.172–176 prevails over unsecured claims of the Cane Commissioner and workmen, absent a winding-up. Map contract-act 172 cited only. Do not pad 173/176 (not empty-teaching isolates this pass).
On this section: A bank-pawnee’s special property under Contract 172–176 in pledged goods prevails over unsecured cane-price and workmen claims absent winding-up (Central Bank / Siriguppa). Do not pad 173/176.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… in certain cases - The provisions of this Act shall not apply to — (a) a lien on any goods, money or security given by or under the Indian Contract Act, 1872 (9 of 1872) or the Sale of Goods Act, 1930 (3 of 1930) or any other law for the time being in force; (b) a pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872 (9 of 1872); (c) creation of any security in any aircraft as defined in clause (1) of section 2 of the Aircraft Act, 1934 (24 of 1934); (d) creation of security interest in any vessel as defined in clause (55) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958); …
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… in certain cases.— The provisions of this Act shall not apply to— - (a) a lien on any goods, money or security given by or under the Indian Contract Act, 1872 (9 of 1872) or the Sale of Goods Act, 1930 (3 of 1930) or any other law for the time being in force; - (b) a pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872 (9 of 1872); - (c) creation of any security in any aircraft as defined in clause (1) of section 2 of the Aircraft Act, 1934 (24 of 1934); - (d) creation of security interest in any vessel as defined in clause (55) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958); - …
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… The third respondent has pointed out that the stock in trade is not liable to be proceeded against, by -3- virtue of the exemption as per Section 31 (d) of the SARFAESI Act, read with Section 172 of the Indian Contract Act, which position is sought to be rebutted from the part of the petitioner. The difficulty met by the Bank in realising the due amount from the petitioner and also the third respondent is explained by the learned counsel appearing for the Bank, stating that the proceedings have been taken to …
Questions about Section 172
What have the courts held on Section 172 of the Indian Contract Act?
Central Bank of India v. Siriguppa Sugars and Chemicals Limited (07 Aug 2007) is the leading judgment on this section among those set out below: A bank-pawnee’s special property under Contract 172–176 in pledged goods prevails over unsecured cane-price and workmen claims absent winding-up (Central Bank / Siriguppa). Do not pad 173/176.
How do I find court cases under Section 172 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 172, section 172 Contract Act, section 172 of the Indian Contract Act. People searching for it also type indian contract act 172. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Central Bank of India v. Siriguppa Sugars and Chemicals Limited (07 Aug 2007).
When did Section 172 of the Indian Contract Act come into force?
Section 172 of the Indian Contract Act, cited as Contract Act 172, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.