Chapter IX - Of Bailment
Section 177
Section 177: Redemption before actual sale
A defaulting pawnor may redeem pledged goods before their actual sale, while paying expenses arising from the default.
On this page
Need advice on Section 177?
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.
Statutory text
Bare law
If a time is stipulated for the payment of the debt, or performance of the promise, for which the pledge is made, and the pawnor makes default in payment of the debt or performance of the promise at the stipulated time, he may redeem the goods pledged at any subsequent time before the actual sale of them; but he must, in that case, pay, in addition, any expenses which have arisen from his default.
Rule and business relevance
The right continues after the stipulated payment or performance time, up to actual sale, subject to satisfaction of the secured obligation and the stated additional expenses.
Limits and related provisions
Do not equate a default date or mere sale notice with an actual completed sale. Establish the precise timeline and any applicable procedural requirements.
Hypothetical business example
Hypothetical example: A borrower tenders the required secured amount and default expenses after notice but before actual sale. The redemption position must be assessed at that point.
Practical decision flow
Identify the secured obligation and default.
Confirm whether an actual sale has occurred.
Calculate the required redemption payment including default expenses.
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 the secured obligation and default.
- Confirm whether an actual sale has occurred.
- Calculate the required redemption payment including default expenses.
Avoid
- Do not equate a default date or mere sale notice with an actual completed sale. Establish the precise timeline and any applicable procedural requirements.
Glossary
- Redemption
- Recovering pledged goods by satisfying the relevant secured obligation.
- Actual sale
- The event limiting the statutory post-default redemption period.
Frequently asked questions
Does default immediately end redemption?
No. The section permits redemption before actual sale.
Can default expenses be added?
Yes. The pawnor must pay expenses arising from the default.
Is sale notice necessarily the same as actual sale?
No. The wording specifically refers to actual sale.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026