Right of lien on the

goods bailedSakshi Shukla

What is Bailment?

Bailment consists in delivery of goods, i.e. movable property, by one person,

who is generally the owner thereof, to another person for some purpose. The

goods are to be returned to their owner after the purpose is accomplished, or

they are to be disposed of according to the directions of the person delivering

them.

In a contract of bailment, the person who delivers the goods is called the

“bailor” and the person to whom the goods are delivered is called the

“bailee”.

Right of lien on the goods bailed (Secs.

170 and 171)

Lien is the right of the bailee under which the bailee can retain the goods of

the bailor, and refuse to deliver them to the bailor, until his due remuneration

for services in respect of the goods bailed, or the amount due is paid.

The Act recognizes two kinds of lien:

1. Particular lien, and

2. General lien.

Particular lien (Sec. 170)

According to Section 170, “Where the bailee has, in accordance with the

purpose of the bailment, rendered any service involving the exercise of labor

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.”

The right of lien is a right to retain possession of the goods. If the bailee’s

right of lien has ended by parting with the possession, it is not revived if he

happens to get the possession again. In Eduljee v. Café John Bros., the seller

sold a second hand refrigerator. After sometime there was some trouble in it

and two parts of the same were taken out and sent to the seller for repair

work. The seller, to whom the price had not been paid, wanted to exercise

the right of lien. It was held that the seller’s right of lien had came to an end

when he had delivered the refrigerator.

General lien (Sec. 171)

According to Sec. 171, “General lien of bankers, factors, wharfingers,

attorneys and policy-brokers.—Bankers, factors, 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

such balance, goods bailed to them, unless there is an express contract to

that effect.”

The right of the general lien has been conferred on the following kinds of

bailees:

1. Bankers

2. Factors

3. Wharfingers

4. Attorneys of a High Court, and

5. Policy-brokers

General lien of Bankers

According to Section 171, bankers can exercise general lien, i.e., they can

retain as a security, goods bailed to them, for a general balance of account.

This right is available in the absence of a contract to the contrary.

In K. Sita v. Corporation Bank, the question for decision in the writ petition

was, whether the respondent bank can exercise general lien over gold

ornaments pledged by the petitioner to raise a particular loan, even after

repayment of the loan, for the purpose of recovery of another loan

subsequently advanced to the petitioner by the respondent bank.

General lien of Factors

A factor is a mercantile agent within the meaning of sec. 2(9) of the Sale of

Goods Act. A factor is an agent entrusted with the possession of goods of his

principal for selling them. He has a right of general lien over the goods

belonging to his principal, which are in his possession, for the general balance

of account.

In E.H. Parakh v. King Emperor, the applicant was the proprietor of a firm of

Motor Engineers and Coach builders. The firm was entrusted with the

possession of an American car “Moon” for sale. The management of the

respondent’s estate was taken over by the Court of Wards. It was held that

the applicant’s firm had a right of general lien over the car.

General lien of Wharfingers

Wharf means a loading stage alongside a sea or a river for loading and

unloading vessels. Wharfinger means a person who owns, has the care of, a

wharf.

A wharfinger has a lien over the goods of his customer until his wharfage, i.e.,

the charges for the use of the wharf, are paid to him. His claim of general

lien is valid only in respect of those goods which he received in his capacity as

a wharfinger.

General lien of Attorney

According to section 171, the attorneys of the High Court can retain the

documents belonging to the client, which are with him, until his fees for the

professional services are paid to him.

In Lalchand Ramchand v. Pyare Dasrath Chamar, it was held that if some

document, like a pronote, which is the foundation of the suit, is given to an

Advocate for being filed along with the plaint or at the first hearing of the

suit, the necessary implication in such a case is that the advocate shall file

the document as needed, and his right of general lien as regards such a

document is excluded by an implied contract.

General lien of Policy-brokers

A policy-broker means a person who acts as an insurance agent to effect

marine insurance. He is one of the persons mentioned in section 171, having a

right of general lien. He can exercise until the balance of account due to him

from a client has been paid.