Section 174 of ICA : Section 174: Pawnee Not To Retain For Debt Or Promise Other Than That For Which Goods Pledged

Explanation using Example

Imagine Rahul borrows Rs. 50,000 from a local lender, Priya, and pledges his laptop as security for the loan. According to Section 174 of the Indian Contract Act, Priya, the pawnee, can only retain the laptop for the repayment of the Rs. 50,000 debt and not for any other debts Rahul may owe her, unless they have a separate agreement stating otherwise. If Priya later lends Rahul another Rs. 20,000, it is presumed that the laptop can also serve as a pledge for this new loan, unless there is a clear agreement that it does not.