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pledged were redeemed and were again sub-pledged with defendant No.4. The plaintiff made part-payment of the amounts due to the original pawnee - Manni Ram. The balance amount stood extinguished by virtue of the Debt Redemption Act. The plaintiff, therefore, sued to recover possession of the three ornaments which were pledged contending that he was not bound by the sub-pledges made to defendant Nos.3 and 4 and as the original debt had been satisfied he was entitled to get the ornaments from defendant No.4.

Whatever doubt may be indulged in, in the case of a mere factor, it has been decided in the case of a strict pledge, that if the pledgee transfers the same to his own creditor the latter may hold the pledge until the debt of the original owner is discharged."

If, therefore, Manni Ram sub-pledged to the appellant the ornaments which the plaintiff had pledged to him, Manni Ram having only a limited interest in them the pledge was valid only to the extent of the interest which Manni Ram himself possessed in the ornament. In other words, Manni APPL92.14.doc Ram could not give to the appellant rights superior to those of his own. The only right he had in the ornaments was to retain them as security for the satisfaction of the loan which he had himself advanced.

The judgment is of no assistance to the appellant for two reasons.

Firstly, the agreement in that case did not permit the pawnee to create a sub-pledge. The loan agreements in the case before us specifically permitted respondent Nos.1 and 2 to use the said shares as margin. The Division Bench did not hold that even in such cases, the pawnee's creditor is bound to return the goods sub-pledged upon the pawnor paying the pawnee's dues although the pawnee has not paid his i.e. the pawnee's creditors' dues. Where such an authority is conferred it cannot be said that the pawnee's creditor holds the goods pledged only until the debt of the original owner is discharged. Secondly, the provisions of the Depositories Act did not fall for consideration in that matter. Indeed, the Depositories Act was introduced in the year 1996.