KESARIMAL Vs. GUNDABATHULA SURYANARAYANMURTHY

JUDGEMENT

(1.) This case raises a question of some importance as regards the exercise by a pledgee of his right to sell the pledge for realizing the debt secured by the pledge. The material facts of the case are as follows:

(2.) The defendant borrowed from the plaintiff on 8 October 1922 Rs. 765 stipulating to pay interest therefor at a certain rate per mensem and the debt was secured by two gold ornaments weighing 36-1/8 tolas. In March 1924 the plaintiff sent a formal notice to the defendant informing him that unless the amount 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 30 March 1924, and on the same day he also paid Rs. 100 to the plaintiff towards interest. In Ex. B the defendant wrote as follows: I shall pay the balance of principal and interest by 30 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 between the parties. Then on 20 July 1924 the plaintiff sent another registered notice to the defendant informing him that the value of the jewels already pledged with him by the defendant is not sufficient security for the principal and interest due to him and that if the amount is not repaid within 24 hours he will sell the pledged jewels in the bazaar on 20 August 1924 without any further notice for realizing the amount due to him. This notice was replied to by the defendant on 19 August 1924 in which he asked for further time. He says in this letter: I shall before 1 September 1924 pay you the principal and interest due to you and redeem the said jewels. If I fail to do so you sell the jewels at my risk without giving me any notice and credit the amount in the katha. I shall pay the balance that may be still due according to the credit and debit entries. I shall not raise any kind of dispute in respect of the said jewels.