Direct Answer
A Pledge (or Pawn) under Section 172 of the Indian Contract Act is the bailment (delivery) of movable goods as security for the payment of a debt or the performance of a promise.
Core elements of a valid pledge:
• Delivery of Possession: The most critical element. The lender (pledgee) must take actual or constructive possession of the goods (e.g., gold ornaments, warehouse receipts).
• Ownership Retained: The borrower (pledgor) retains legal ownership of the goods; only possession is transferred.
• Return upon Repayment: The exact goods must be returned once the debt is discharged.
• Delivery of Possession: The most critical element. The lender (pledgee) must take actual or constructive possession of the goods (e.g., gold ornaments, warehouse receipts).
• Ownership Retained: The borrower (pledgor) retains legal ownership of the goods; only possession is transferred.
• Return upon Repayment: The exact goods must be returned once the debt is discharged.