ASSIGNMENT ON

BUSINESS LAW
Difference between Particular Lien
and General Lien

By: Raveena Sharma

20MBA019
MBA 2nd Semester
 PARTICULAR LIEN
A Particular Lien is defined under Section 170 of the Indian Contract Act, 1872.
According to which, it is a right of a person to retain possession of particular
goods bailed to him/her as security, for which charges are due. Particular lien
is available to bailee only against specific goods in respect to which he
rendered some service involving the exercise of labor or skill.

The right of particular lien is available to bailee until he/she receives

remuneration for the services rendered, provided the services are delivered in
full within the stipulated time. The bailee has no right to sue the bailor. If
bailee delivers the goods to bailor without any services or not within the
stipulated time period, he can sue the bailor the particular lien will be waved.
It is available only against the particular property in respect of which the bailee
has expended labor and skill. A bailee is entitled to a particular lien only.

Example:

A gives two cars an Ambassador and a Fiat for repairs to B. B repaired

only the Ambassador car. A took delivery of the ambassador car without
making the payments of the repair charges. B cannot retain the Fiat for the
repair charges due in respect of the Ambassador car. It should be noted that
lien is possessory; hence if possession is lost, the lien is also lost.
 CONDITIONS FOR EXERCISE OF PARTICULAR
LIEN:

To exercise a particular lien, the following conditions are essential:

1. The right lien can be exercised only when the bailee has expended his
labor and skill on the goods bailed. Therefore, mere custody of goods
does not give a right of lien.
2. The right of lien can be exercised only when the work has been
completed in time. If the work has not been completed in time, the lien
cannot be exercised.
3. The right of lien can be exercised only if the payment is due. In case the
payment is to be made on delivery, but at a future date, then the lien
cannot be exercised.
 GENERAL LIEN
A general lien is a right of one person to retain any property or goods which
are in his possession belonging to another person until the promise or
liability is discharged. It is a right to retain the property belonging for a
general balance of the account. General Lien is defined under Section 171
of the Indian Contract Act, 1872. General lien refers to the right of a person
to retain possession of any movable goods belonging to any other person,
as security against a general balance of the account, until the debts are
cleared by the owner.

A general lien is available to bankers, factors, wharfingers, high court

attorneys, policy brokers etc who may, in 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
such balance, goods bailed to them, unless there is an express contract to
that effect.

EXAMPLE:

A has two accounts in a bank. In the savings bank account, he has a

credit balance of $500. In the current account, he has an overdraft of
$1000. The bank can exercise the right of lien on the savings account for the
amount due on the current account.
 CONDITIONS FOR EXERCISE OF A GENERAL
LIEN:

To exercise a particular lien, the following conditions are essential:

1. Right of lien will not apply to properties deposited for safe custody or
a specific purpose.
2. This right can be exercised against any property belonging to the
other party in possession of the person exercising the right.
3. This right can be exercised for a general balance of the account, i.e.,
for any amount due.
4. This right is available only to bankers, factors, wharfingers, attorneys
of High Court and policy brokers.
 KEY DIFFERENCES BETWEEN
PARTICULAR LIEN AND GENERAL LIEN
S.NO BASIS OF GENERAL LIEN
COMPARISON
1 Meaning General Lien alludes to
the right to keep
possession of goods
belonging to other against
general balance of
account.
2 Availability Any goods, in respect of
which the amount is due
to another person.
3 Automatic No
4 Right to sale of No right to sell the goods.
goods
5 Exercised by Bankers. Wharfingers,
factors, policy brokers,
attorneys etc.
PARTICULAR LIEN
Particular Lien implies a
right of the bailee to
retain specific goods
bailed for non-payment
of amount
Only against the goods,
in which skill and labor
is exercised.
Yes
In general, there is no
right to sell goods;
however, the right can
be conferred to bailee in
special circumstances.
Bailee, pledge, finder of
goods, agent, partner,
unpaid seller etc.