General lien and Particular lien in context of Pledge and Bailment
General lien:
As per Sec. 171 of the Indian Contract Act, 1872, it is the right of a person to retain any movable property of someone else as security, against a general balance of the account. It 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. It is a privilege is specially conferred on bankers, factors, wharfingers, attorneys, and policy-brokers who keep the goods bailed to them, during the course of their profession and does not require any contract to that effect. In the absence of an express contract, no other person can retain the property of another as the security for the balance due to them.
Particular Lien:
As per section 170 of the Indian Contract Act, 1872, a bailee is entitled to only particular lien, which means the right to retain only that particular property in respect of which the charge is due.
Section 170: if in conformity to the purpose of the bailment, bailee renders service involving skill or labor in respect of the bailed goods, in the absence of a contract to contrary, he becomes entitled to receive remuneration. The denial of the same by the bailor gives the right to the bailee to retain the goods, against remuneration.
As per Sec. 176 of the Indian Contract Act, a pawnee also has the right to exercise the right of particular lien. If a pawnor is not able to repay the debt within the stipulated time in respect of which the goods were pledged, then the pawnee has the right to sue the pawnor, retain the goods pledged or he may sell the pledged goods on giving reasonable notice to the pawnor. Furthermore, if the pawnee receives less than the amount due from the sale, the pawnor is still liable to pay the balance. The Pawnee however does not become the owner of the goods kept as security and he does not have the right to enjoy the securities.
There are certain conditions that need to be fulfilled:
The bailee must have rendered some service involving labour or skill. Further, the labour or skill exercised by the bailee must improve the good. In the case of Hatton v. Car Maintenance Company, it was held that a right to lien is only available when actual skill and labour is applied to the goods, which ultimately results in the improvement of the goods.
The service must be in accordance with the purpose of the bailment.
The service must be with regard to the thing bailed.
The contract must have been fully performed by the bailee.
There must be no contract to the contrary.
The goods must be in possession of the bailee.
The date of payment may not coincide with the date of return. This section is only applicable when the date of payment is on or before the date of return.
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