Pledge is a special kind of Bailment. Thus, all Pledges are Bailments but the reverse is not true. Bailment of goods as security against the debt for the performance of the obligation or the payment thereon, is known as the pledge.
The bailee under a contract of pledge does not become owner, but, as having possession and right to possess, he is said to have a special property. Pledge, being essentially a bailment, the pawnee is bound to take care of the goods bailed to him as a man of ordinary prudence would under similar circumstances, take of his own goods of the same bulk, quality and value as the goods bailed. If the pawnee loses the goods pawned without any fault on his part, having used such ordinary care, he may still recover the debt, and the loss of the goods would fall on the owner.
The title of goods remains with the pawnor but the possession of goods passes to the pawnee. Deposit of goods with the pawnee is the precondition for pledge. There can be actual or constructive possession of goods. It is the duty of the pawnee, not to make unauthorized use of the pawnor’s goods and take reasonable care of the goods pledged.
|The term bailment is derived from the French word ‘Bailor’, which means ‘to deliver. It means possession voluntarily from one person to another.||Pledge is a special kind of bailment. If the goods are bailed as a security for payment of a debt or performance of a promise, it is called Pledge.|
|Transfer of goods from one person to another for a specific purpose is known as the bailment.||Transfer of goods from one person to another as security for repayment of debt is known as the pledge.|
|It is defined under section 148 of the Indian Contract Act, 1872.||It is defined under section 172 of the Indian Contract Act, 1872.|
|The person who delivers the bailed goods is known as Bailor and the person receiving such goods is known as Bailee.||The person who delivers the pledged goods is known as Pledger or Pawnor and the person receiving such goods is known as Pledgee or Pawnee.|
|Bailment can be for many reasons ranging for reward to gratuitous.||A pledge is bailment done for a specific type of purpose, which is to secure a loan or performance of a promise.|
|The consideration may or may not be present.||Consideration is always there.|
|The bailee does not get a right to sell the goods.||A pawnee has a right to sell the goods in case of default.|
|The bailee only get a right of lien over the goods.||A pawnee gets a right of retainer and a special interest in the goods, which is more that just the lien.|
|The bailee can use the goods bailed.||The pawnee has no right to use the goods.|
|The bailee is not responsible for the loss, destruction, or deterioration if he uses the goods with reasonable care.||The pawnee is absolutely liable for the upkeep of the goods.|