Suppose the secured debt is Rs 100,000 and the collateral is worth Rs 150,000. The ordinary no-fault pledge rule differs from the case where the creditor wrongfully uses or disposes of the asset. In the latter case, liability for the full Rs 150,000 value becomes relevant.
Do not conflate the amount of the debt with the value of the owner’s property. Any final setoff between the outstanding debt and compensation requires identifying both obligations before settling the account.
Opening interactive controls...
Numerical application of full-value liability
Kitab al-Rahn: Misuse, Loan Back, Liability and Death of the Pledgor
Suppose the secured debt is Rs 100,000 and the collateral is worth Rs 150,000. The ordinary no-fault pledge rule differs from the case where the creditor wrongfully uses or disposes of the asset. In the latter case, liability for the full Rs 150,000 value becomes relevant.
Do not conflate the amount of the debt with the value of the owner’s property. Any final setoff between the outstanding debt and compensation requires identifying both obligations before settling the account.