3.6 Provisions of Nepalese Contract Law

• The Code's Chapter 9 (Pledge or Deposit) — the lex generalis; read with the general contract law (Part 5's formation, performance and remedies chapters) and, for enforcement against defaulting borrowers, the banking legislation's realization machinery (the Banking and Financial Institutions Act 2073 — banks' power to take pledge/mortgage/counter- security and to realise on default; the auction discipline — see the guarantee cases in Unit 1 for the Court's recovery jurisprudence). • Banking practice: margin-lending against share certificates (the share-pledge route of portfolio loans), fixed-deposit receipts, gold and bullion, warehouse receipts, and documents of title; the pawnor's documents are returned only on redemption — the practice mirrors Chapter 9's retention rule. • The money-lending world: traditional pawnbroking (gold loans of the sahuji era) now sits beside licensed financial institutions; the consumer-protection overlay (Consumer Protection Act 2075) polices unfair terms in pledge financing. • The criminal interface: a pawnee's dishonest appropriation of pledged goods attracts the Criminal Code 2074's misappropriation-type offences (name only — Criminal Law-II, Semester 4); a pawnor's fraudulent pledge of another's goods invites cheating/forgery exposure. • Insurance practice: pledged goods are commonly insured by the pawnor with the pawnee's interest noted — pledge and insurance (the indemnity of Unit 1) work together in secured lending.