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Arthashastra

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आधान विक्रय अपव्ययनेषु च अस्य चतुर् गुण पञ्च बन्धो दण्डः ॥

If the deposit is either mortgaged or sold or lost, the depositary shall not only restore four times its value, but pay a fine of five times the stipulated value (pancbabandho dandah).

english translation

परिवर्तने निष्पातने वा मूल्य समः ॥

If the deposit is exchanged for a similar one (by the depositary), or lost in any other way, its value shall be paid.

english translation

तेन आधि प्रणाश उपभोग विक्रय आधान अपहारा व्याख्याताः ॥

(Pledges.) The same rules shall hold good in the case of pledges whenever they are lost, used up, sold, mortgaged, or misappropriated.

english translation

न आधिः स उपकारः सीदेत्, न च अस्य मूल्यं वर्धेत, अन्यत्र निसर्गात् ॥

A pledge, if productive, i.e. (a usufructory mortgage), shall never be lost to the debtor (nádhissopakárassídet), nor shall any interest on the debt be charged.

english translation

निरुपकारः सीदेत्, मूल्यं च अस्य वर्धेत ॥

but if unproductive (i.e., hypothecation), it may be lost, and interest on the debt shall accumulate.

english translation