Section 175 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 175 is the shortest of the pawnee's rights: the pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged. It sits beside section 173, which lets the pawnee retain the goods for necessary expenses of possession or preservation. If a pledge has run into unusual costs and you need to know who bears them, our legal consultation service can help.
The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged. The right is to receive these expenses from the pawnor. It is limited to extraordinary expenses and to those incurred for the preservation of the goods. Ordinary necessary expenses of possession and preservation are within section 173's right to retain.
The text
Section 175 reads: "The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged."
Pledge, pawnor and pawnee are defined in section 172.
Limb by limb
| Limb | Plain meaning |
|---|---|
| "is entitled to receive from the pawnor" | The pawnee may claim these sums from the pawnor |
| "extraordinary expenses" | Expenses beyond the ordinary; the text does not define them |
| "incurred by him" | The pawnee must have actually incurred them |
| "for the preservation of the goods pledged" | The purpose must be to preserve the goods |
Section 175 speaks of a right to receive, whereas section 173 speaks of a right to retain. The two work in different ways:
| Section 173 | Section 175 | |
|---|---|---|
| Kind of expense | "all necessary expenses ... in respect of the possession or for the preservation" | "extraordinary expenses ... for the preservation" |
| The right | To retain the goods for them | To receive them from the pawnor |
| Against whom | Held against the goods | Claimed from the pawnor |
The text does not say that a right to retain does not also arise for extraordinary expenses. It does not say either way; section 173's words ("all necessary expenses") are wide. This article does not go beyond what the two sections say.
The Act prints no illustration under section 175, and the text gives no list of what is extraordinary. The comparison with section 158 may help: that section makes a bailor repay a bailee's "necessary expenses" where the bailee is not paid. See sections 158 and 159. Section 175 is the pledge-specific counterpart for extraordinary preservation costs.
What "extraordinary" might look like
The Act does not give examples, so the examples here are our own and are not the Act's. A cost that goes beyond routine safekeeping, such as an urgent step to protect the goods from an unexpected danger, is the kind of thing a reader would class as extraordinary. Whether a particular cost meets the test is a matter of the facts and of the wording of the pledge agreement.
A modern example of our own
Omkar pledges a consignment of stored dry fruit to Pallavi Lenders as security for a loan. During the pledge a leak damages the roof of the warehouse where the goods are kept, and Pallavi Lenders pays for urgent repairs and temporary covering to save the stock. These costs are well beyond ordinary storage. Under section 175, Pallavi Lenders as pawnee is entitled to receive from Omkar, the pawnor, the extraordinary expenses incurred for the preservation of the goods pledged.
Compare: the ordinary monthly cost of keeping the same stock in a locked room. That is the sort of "necessary expense of possession" that section 173 deals with in terms of retainer.
What can the parties change?
Section 175 has no words about contrary contracts. The pledge agreement can nevertheless set out how expenses are shared and what notice the pawnee must give before incurring a large cost. The text does not say whether an agreement that removes the pawnee's right would be effective; any such clause should be read with care.
What the section does not say
- It does not say whether the pawnee must tell the pawnor before incurring the cost.
- It does not say when the pawnor must pay.
- It does not say whether interest runs on the sum.
- It does not say that extraordinary expenses can be added to the debt for which the goods are retained, although section 173 allows retention for "all necessary expenses". How the two sections interact on that point is left open by the text.
Practical points
- Pawnees: keep bills, reasons and dates for any unusual expense; where practicable, tell the pawnor before incurring it and record the response.
- Pawnors: ask the pawnee to notify you of any exceptional step for preservation and to share the invoices.
- Both: decide in the pledge agreement who insures the goods, who pays for storage and who bears emergency costs.
- Do not mix ordinary storage fees and extraordinary costs on one line of a statement. Keep them separate.
- The pawnee's rights on default are in section 176.
Need help with costs on a pledge?
Whether a cost counts as extraordinary, and who must bear it, depends on the facts and the pledge terms. Our legal consultation team can look at the pledge agreement and the expenses against sections 173 and 175. Bring the pledge document and the bills.
Key takeaways
- The pawnee is entitled to receive from the pawnor extraordinary expenses incurred for the preservation of the goods pledged (s.175).
- The expense must be extraordinary, incurred by the pawnee and for preservation.
- Ordinary necessary expenses of possession and preservation are dealt with in section 173.
- The Act prints no illustration under section 175.
Read next
- Section 173: pawnee's right of retainer
- Section 176: pawnee's right where pawnor makes default
- Bailment and Pledge: sections 148–181 overview
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.