Concise Law Dictionary : A right by which a person in possession of the property holds and retain it against the other in satisfaction of a demand due to the party retaining.

If the bailee’s lawful charges are not paid, he may retain the goods. The right to retain any property until the charges due in respect of the property are paid is called ‘the right of lien’.

The Supreme Court in Syndicate Bank v. Vijay Kumar laid down that a lien is in primary sense a right given by law and not by contract.

Liens are of two kind : (1) Particular Lien (s 170) & (2) General Lien (s 171)

Bailee’s Particular lien (Section 170)

As a general rule, a bailee is entitled only to particular lien, which means the right to retain only that particular property in respect of which the charge is due.

Sec 170. Bailee’s particular lien

Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed he has in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect of them.

Illustrations

(a) A delivers a rough diamond to B, a jeweller, to be cut and polished, which is accordingly done. B is entitled to retain the stone till he is paid for the service he has rendered.

(b) A gives cloth to B, a tailor, to make into a coat, B promises A to deliver the coat as soon as it is finished, and to give a three months’ credit for the price, B is not entitled to retain the coat until he is paid.

The right is available subject to certain important conditions ;

Foremost among them is that, the bailee must have rendered some service involving the exercise of labour or skill.

Secondly, labour or skill must have been exercised in accordance with the purpose of the bailment.

Thirdly, only such goods can be retained on which the bailee has bestowed trouble and expense, he cannot retain any other goods.

Chand Mal v. Ganda Singh : Where a bailee claimed lien for storage of sugar, it was held that, such custody, not being a service involving the exercise of labour or skill within the meaning of section 170

Vothoba Laxman Kalar v. Maroti U Kalar : A person to whom cattle are given for grazing does not have the right of lien on them for his charges.

Lien is a personal right which continues only so long as the possessor holds the goods (Legg v. Evans). The right of lien may also be defeated or excluded by an agreement to the contrary.

General lien of bankers, factors, wharfingers, attorneys and policy brokers (Section 171)

Banker : means any association, a company, or association who accepts, for the purpose of lending or investment, deposit of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise. (Bombay Stamp Act)

Factor : An agent, entrusted with possession of goods for the purpose of selling them for his principal. He has a general lien on the goods of his principal for his balance of account against principal.

Wharfingers : Wharf means a place contiguous to water, used for the purpose of loading and unloading of goods. Wharfinger is he that, owns or keeps wharf, or has the supervision or the management of it.

Concise law dictionary define Attorney : he is one that is appointed by another man to do anything in his absence. & Solicitor : is one properly qualified and formally admitted to practice as a law-agent in any court.

Policy-broker : An insurance agent who is employed to effect a policy of marine insurance is called a policy-broker. His lien extends to any balance on any insurance account due to him from the person who employed him to effect the policy.

Section 171 : General lien of bankers, factors, wharfingers, attorneys and policy brokers : Bankers, factor, wharfingers, attorneys of a High Court and policy brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other persons have a right to retain, as a security for which balance, goods, bailed to them, unless there is an express contract to that effect.

The right of ‘general lien’ as provided in section 171, means the right to hold the goods bailed as security for a general balance of account. General lien entitles the bailee to detain any goods bailed to him for any amount due to him whether in respect of those goods or any other goods.

Time-barred debts and lien : One of the great advantage of the right of lien is that, it can be exercised for the realization of a debt even when an action for recovery of the debt would be time-barred (Bombay Dyeing & Mfg Co Ltd v. State of Bombay).