Meaning of Lien
The term “lien” refers to the right of a person to retain possession of goods belonging to another until certain lawful charges or dues are paid. It is not a right to sell the goods, but only to retain them as security for payment. Under the Indian Contract Act, 1872, liens are mainly divided into Particular Lien and General Lien. A lien arises from possession and ceases when possession is lost. The concept ensures fair dealing between parties by giving the creditor a form of security while maintaining the debtor’s ownership. This right is available in situations where services have been rendered or expenses incurred in relation to the goods, protecting the interests of persons who improve or maintain another’s property.
Particular Lien – Section 170
According to Section 170 of the Indian Contract Act, 1872, a particular lien is the right of a person to retain possession of goods for charges incurred in respect of those very goods. It applies only to specific items on which work has been done. The person holding the goods cannot retain any other goods of the owner for unrelated debts. For instance, a jeweller who repairs a customer’s gold chain can retain only that chain until payment is made for the repair. The right exists only if services have improved or added value to the goods and the work was done lawfully. Thus, a particular lien is a limited right, connected directly to the specific goods in question.
General Lien – Section 171
Under Section 171 of the Indian Contract Act, 1872, certain professionals like bankers, factors, wharfingers, attorneys, and policy brokers have a general lien, which allows them to retain any goods of the debtor in their possession until the general balance of account is settled. This right is broader than a particular lien, as it extends to all goods belonging to the debtor, not just those related to a specific transaction. However, the general lien exists only for those persons authorized by law or by express contract. For example, a bank can retain securities or goods deposited by a customer for any amount owed by that customer to the bank. Hence, a general lien provides a comprehensive security right covering multiple debts or transactions.
Real-Time Example
Suppose Mr. A gives his car to Mr. B, a mechanic, for repairs worth ₹10,000. Mr. B completes the repairs, but Mr. A refuses to pay. Mr. B can exercise a particular lien under Section 170 by retaining that car until payment is made. On the other hand, if Mr. A maintains a current account in XYZ Bank and owes ₹50,000, the bank can exercise a general lien under Section 171 by retaining the securities or deposits held with it until the full amount is paid. These examples illustrate how particular lien applies to a specific item for specific charges, while general lien applies to all goods in possession for general dues.
Easy Mnemonic
To remember Particular and General Lien, use the mnemonic “S-P-E-C-G-A-B”:
- S – Specific goods → Particular Lien (Sec. 170)
- P – Payment for that item only
- E – Exists for individual transaction
- C – Ceases if possession lost
- G – General Lien → Broader (Sec. 171)
- A – Applies to all goods for all dues
- B – Bankers and professionals can claim
Think of it as “SPEC-GAB” — Specific for Particular, General for All, Bankers benefit most. This helps you instantly recall that Particular Lien = specific item, and General Lien = all goods for general debts under Sections 170 and 171 of the Indian Contract Act, 1872.
About lawgnan:
Want to simplify tough legal concepts like Lien under the Indian Contract Act, 1872? Visit Lawgnan.in, your trusted platform for clear, exam-ready law notes. Learn the difference between Particular Lien (Sec. 170) and General Lien (Sec. 171) through simple explanations, case examples, and mnemonics crafted for LLB students. Lawgnan provides updated notes, previous year papers, and study guides that make your preparation effortless. Master the essentials of contract and commercial law with structured content designed for clarity and quick revision.
Explore comprehensive law notes now at Lawgnan.in
