Banker's Lien

1. A lien is the right to- retain goods or securities belonging to a debtor until he discharged a debt to the retainer thereof.
2. A lien may be- Particular or/and General.
3. Banker's lien is a general lien and is specially conferred by- Section 171 of the Indian Contract Act, 1872.
4. Banker's general is available in respect of- all securities deposited with him as banker by the customer, unless there is contract inconsistent with lien.
5. The right of lien is available to the banker only when the goods/securities have been given to him as:- Bailee.
6. The right of lien is available to the banker- even in respect of time-barred debts.
7. The banker's lien is- an implied pledge.
8. Banker's lien extends to - cheques and bill of exchange payable to customer, depository receipts and certificates of deposits of money issued to the customer, and insurance policies share certificates and debentures standing in the name of the customer.
9. The title deeds of lad owned by the customer, Money paid into the bank for the credit of a deposit account, Credit balance in a deposit account- are not covered under the banker's lien.
10. Bankers can exercise general lien in respect of- Goods and Securities.
11. Securities received for sale, Securities deposited upon a particular trust, although trust fails, Securities left in banker's hands, after an advance against them has been declined,- may not be subjected to banker's general lien.