lien
A lien is a right of retention, not of sale. A particular lien attaches to specific goods for charges on those goods: a bailee who has rendered services involving labour or skill on the goods may retain them until paid (Section 170, Contract Act). A general lien allows retention of any goods of the debtor for a general balance of account; it is available to bankers, factors, wharfingers, attorneys of a High Court and policy brokers (Section 171), or by contract.
An agent has a lien on the principal’s property (Section 221) and an unpaid seller has a lien on goods in his possession (Section 47, Sale of Goods Act). The lien is lost when possession is given up. Distinguish a pledge, where the pawnee can sell after notice.
Example
The tailor exercised a particular lien and refused to hand over the stitched suit until his charges were paid.
In Indian law
- Sections 170, 171 and 221, Indian Contract Act, 1872
- Section 47, Sale of Goods Act, 1930
See also
bailment · pledge · agency · sale of goods
Read more in the study notes
- Arbitration: meaning, kinds and salient features of the 1996 Act (Alternative Dispute Resolution Systems)
- Government contracts and state liability: the administrative-law angle (Administrative Law)
- Central Vigilance Commission, parliamentary committees and commissions of inquiry (Administrative Law)
- Need for ADR, international commitments and suitability of disputes (Alternative Dispute Resolution Systems)
- Principal steps in arbitration and interim measures (Alternative Dispute Resolution Systems)
- Enforcement of arbitral awards and foreign awards (Alternative Dispute Resolution Systems)