Bank.
5. Section 171 of the Act is as follows:-
171. General lien of bankers, factors,
wharfingers, attorneys and policy brokers - Bankers,
factors, wharfingers, attorneys ... lien is explained as under:
"Extent of lien - By mercantile custom the banker
W.P.(C) No.30600/2013
4
has a general lien
Banks to exercise general lien towards general
balance of account for any sum due to them, hence, general lien can be
exercised in respect ... expression Banker's lien. In
paragraph-6 of the judgment, the definition of lien and Banker's lien is
noticed in following words
general balance of account any goods bailed to it. Section
171 of the Contract Act, however, is a recognition of the
right of general lien ... lien can be exercised by bankers and in
which cases such lien cannot be exercised by bankers will,
equally apply to exercise of lien under
Section 171 of the said Act reads as under:
"171. General lien of bankers, factors wharfingers, attorneys and policy-brokers. --Bankeres, factors, wharfingers, attorneys ... very well be seen from the aforesaid provision that Bankers have general lien in the absence of contract to the contrary to retain security
consideration in the present matter, is being reproduced below:
"171. General lien of bankers, factors, wharfingers, attorneys and policy-brokers -
Bankers, factors, wharfingers, attorneys ... mercantile custom the banker has a general lien over all forms of commercial paper deposited by or on behalf of a customer in the ordinary
rupees 1,83,500/- in exercise of its lien and/or general lien. Alternatively, the defendant bank was entitled to appropriate ... counter guarantee but did so in exercise of its general lien under Section 171 of the Contract Act. The Bank could retain any goods bailed
which are in the possession or power of the mortgagee...
171. General lien of bankers, factors, wharfingers, attorneys and policy brokers-Bankers, factors, wharfingers, attorneys ... supra), Supreme Court made following observations about exercise of right of general lien of Bankers as under:
By Mercantile system the Bank has a general
Indian Contract
Act, 1872 which states as under: -
"171. General lien of bankers, factors, wharfingers,
attorneys and policy-brokers.--Bankers, factors,
wharfingers, attorneys ... goes to show that by mercantile
system the Bank has a general lien over all forms of
securities or negotiable instruments deposited
provision extends to the entire general balance of account due to the solicitor; (2) Section 171 speaks of general lien in respect of the goods ... passive or retaining lien."
The learned Judge, further held that the retaining lien in respect of money is not a general lien
India Contract Act, 1872 to say that the general
lien of a Banker, etc, in the absence of a contract to the contrary, to retain ... Indian Contract Act, 1872, Mr. Chamaria submits
that a general lien on all security deposit with it by the petitioner is also applicable in
respect
