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 Bankingand 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.