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Chapter IX - Of Bailment

Section 175

Section 175: Extraordinary preservation expenses

The pawnee may recover extraordinary expenses incurred to preserve pledged goods from the pawnor.

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Need advice on Section 175?

This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.

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Statutory text

Bare law

The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged.

Rule and business relevance

This provision concerns reimbursement of extraordinary preservation expenses. It should be read separately from section 173’s retention categories.

Limits and related provisions

Do not describe this short section as independently creating a right to retain goods for every extraordinary expense. Establish the preservation purpose and actual expenditure.

Hypothetical business example

Hypothetical example: Exceptional treatment is needed to preserve pledged goods after an unexpected event. The pawnee documents the expense and seeks reimbursement from the pawnor.

Practical decision flow

Identify why the expense was extraordinary.

Connect it to preserving the pledged goods.

Retain invoices and seek repayment of the supported amount.

Check the applicable legal framework

This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.

Practical checklist

Do

  • Identify why the expense was extraordinary.
  • Connect it to preserving the pledged goods.
  • Retain invoices and seek repayment of the supported amount.

Avoid

  • Do not describe this short section as independently creating a right to retain goods for every extraordinary expense. Establish the preservation purpose and actual expenditure.

Glossary

Extraordinary expense
A preservation expense beyond the ordinary necessary costs contemplated in the surrounding provisions.
Reimbursement
Repayment by the pawnor of the qualifying expense.

Frequently asked questions

Who must repay the qualifying expense?

The pawnor.

Does this section itself state a retention right?

It states entitlement to receive extraordinary preservation expenses; retention needs separate analysis.

Must the expense concern preservation?

Yes. That is the stated purpose.

Need help applying this provision to your situation?

Contact Bizeneed

Last updated 10 October 2026